The Commissioner Of Income Tax,Patiala v. The Punjab Small Industries & Exportcorporation Limited, Chandigarh

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income Tax Reference No. 549 of 1995Date of decision: August 25, 2008 The Commissioner of Income Tax,Patiala. .. Applicant. v. The Punjab Small Industries & ExportCorporation Limited, Chandigarh. .. Respondent. CORAM: HON'BLE MR. JUSTICE HEMANT GUPTAHON'BLE MR. JUSTICE RAJESH BINDAL Present: Ms. Urvashi Dhugga, Advocate for the applicant. Mr. Akshay Bhan, Advocate for the respondent. .. Rajesh Bindal J. The following questions of law have been referred for opinion of thisCourt by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (forshort, `the Tribunal') arising out of order dated 13.5.1995 in I.T.A. No.989/Chandi/1989, for the assessment year 1985-86: “1.Whether on the facts and in the circumstances of the case, theITAT was right in law in upholding the order of the CIT(A)deleting addition of Rs. 84,12,619/- made on account ofinterest receivable by the assessee on accrual basis ?ITAT was right in law in upholding the order of the CIT(A)deleting addition of Rs. 84,12,619/- made on account ofinterest receivable by the assessee on accrual basis ? 2.Whether on the facts and in the circumstances of the case, theITAT was right in law in allowing change of method ofaccounting for part of the source of income ?”ITAT was right in law in allowing change of method ofaccounting for part of the source of income ?” For the detailed reasons recorded in our judgment of even date inI.T.R. No. 72 of 1989 – The Commissioner of Income-Tax, Patialav. M/s PunjabState Small Industries Corporation Ltd., Chandigarh, the questions referred toabove, are answered against the Revenue and in favour of the assessee. The reference is disposed of accordingly. (Rajesh Bindal)Judge August 25, 2008mk (Hemant Gupta)Judge