Case Law Details
Brief of the Case
ITAT Ahmedabad held In the case of West Bengal Infrastructure Development Finance Corporation vs. ACIT that in the case of CIT vs Vasisth Chayt Vyapar Ltd. 330 ITR 440 (Delhi) , it was held that the real income theory was still relevant and recognition of income in terms of Prudential Norms of RBI did not deviate from the mercantile system of account u/s 145 of the Income Tax Act. We are of the view that in the instant case due to uncertainty in collection there was no accrual of income having regard to the real income theory which is engrained in the RBI’s prudential norms for recognition of revenue.
Facts of the Case
ITA No.388/Kol/2008 (Assessee’s appeal)
The assessee is a Government company wholly owned by the Government of West Bengal. It is a non banking finance company registered with the Department of Non-Banking Supervision, Kolkata Regional Office of Reserve Bank of India. During the previous year relevant to A.Y.2001-02 i.e. on 18.9.2000 and 18.11.2000 the assessee paid EMI to ICICI bank in respect of term of loan taken by the assessee. The
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