Method of accounting can be changed if such change is bona fide and permissible under law

Issue :- It was noticed by the assessing officer that the assessee Company has changed its accounting policy during the year under consideration and it was found that the Company has assessed loss of Rs.6,29,200/-. During the year under consideration as compared to last year profit of Rs.1,27,860/- and therefore, the assessing officer was of the opinion that the impact of change in system has resulted in reduction of revenue during the year. Assessing officer passed assessment order making addition of Rs.45,78,354/- into total income of the assessee by observing that the assessee has deviated ...