Capt. K.C. Saigal vs Commissioner Of Income Tax
1987 Latest Caselaw 295 Del

ORDER

1. By the Court - This petition has been filed in respect of two asst. yrs. 1976-77 and 1977-78. Counsel for the petitioner states that this petition may be treated as referable to the asst. yrs. 1977-78 and that the assessed will be filing a separate petition so far as the asst. yrs. 1976-77 is concerned, if necessary, with an application for condensation of delay. The petitioner is at liberty to do so and the petition may be put up for hearing in due course.

2. So far as the asst. yrs. 1977-78 is concerned, the assessed has posed as many as 10 questions. We are of opinion that questions 7 to 10 do not call for any reference. We, therefore, reject the application so far as these questions are concerned.

3. Questions 1 to 6 raise, in our opinion, a single question of law. The question is as to whether the assessed can be said to be not aggrieved by the assessment order merely because the receipts as returned by the assessed on cash basis have been accepted by the ITO had clearly observed that the receipts basis was not appropriate and that the receipts should be shown by the assessed on the mercantile system. The AAC dismissed the appeal on the above ground. We find that the Tribunal has taken the same view. It also pointed out that it was open to the assessed to canvass the correctness of the above observations of the ITO in other years in which the income is sought to be taxed on accrual basis. We are of opinion that the question raised by the assessed is a question of law and is also an important one because it raises the question regarding the method of accounting of the assessed to be adopted for the assessment of an assessed which has to be consistent over a number of years. The decision so far as this year is concerned, will have repercussions on other years and at least in order to ensure consistency in the method of assessment, this issue has to be kept alive. We, therefore, direct the Tribunal to state a case and refer the following question of law for the decision of this Court :

"Whether on the facts and in the circumstances of the case, the assessed was entitled to prefer an appeal to the AAC against the assessment made by the ITO on the receipts returned by the assessed while observing that the assessed should have returned the same on accrual basis ?"

The application is disposed of. No order as to costs.