The Commissioner Of Income Tax-6 v. M/S. Grasim Industries Ltd

ASN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.165 OF 2013 The Commissioner of Income Tax-6. v. M/s. Grasim Industries Ltd. ..Appellant. ..Respondent. Mr.Suresh Kumar for the Appellant. Mr.J.D. Mistri,Sr.Advocate with A.K.Jasani for the Respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATE : 22nd March, 2013. PC: In this appeal by the revenue for assessment year 1998-99, following questions of law have been raised for our consideration a)Whether on the facts and in the circumstances of the case and in law the Tribunal was correct in appreciating the fact that assessee being company, is required to follow the mercantile system of accounting and interest income on day to day basis ought to be brought to tax on accrual basis? b)Whether on the facts and in the circumstances of the case and in law the Tribunal was correct in law in relying on the decision of the Madras High Court in the case of CIT v. Tamil Nadu Mercantile bank Ltd, 291 ITR 137 to delete the interest notionally computed on securities and taxed? 2)The Tribunal allowed the claim of the respondent assessee by following its order passed in respect of assessment year 1996-97 and 1997-98 on an identical issue. The revenue has accepted the order of the Tribunal on the above issue passed for assessment years 1996-97 and 1997-98. The impugned order records the fact that though appeal from the order of the Tribunal for assessment years 1996-97 and 1997-98 was filed before this Court, the above issue was not pressed. Consequently, this Court decided the issue in favour of the Assessee and against the Revenue. In the present proceeding no case has been made out by the revenue to distinguish the facts stated in the order passed by the Tribunal for assessment years 1996-97 and 1997-98 to the facts arising in the subject assessment year i. e. 1998-99. In the circumstances, we see no reason to entertain the proposed ASN question of law. 3)Accordingly, the appeal is dismissed with no order as to costs. (M.S.SANKLECHA, J.) (J.P. DEVADHAR, J.)