Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act Chit Fund Scheme 1961 S. 211(2) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961:Chit Fund Scheme - Income - Assessment of - Accounting of chit discount - Completed Contract Method of accounting or Deferred Revenue Expenditure Method - Claim for chit discount - Held: Income accrued under the chit fund scheme could be identified by following several methods of accounting including Completed Contract Method or Deferred Revenue Expenditure Method - Completed Contract Method leads to objective assessment of income - No finding recorded by the Courts below to the effect that the Completed Contract Method distorts the profits/income - Even calculation of income from the Deferred Revenue Expenditure Method brings the same result - In past, Revenue had accepted the Completed Contract Method of accounting for the purpose of allowability of chit discount -Hence, no interference with the judgment of High Court allowing Completed Contract Method of accounting for calculating income called for.Income Tax Act, 1961; S. 211(2): Accounting Standards (AS) - Substitution of Deferred Revenue Expenditure Method in place of Completed Contract Method of accounting in terms of AS 22 - Held: Not allowed since Revenue did not invoke AS 22 in the instant appeals.Words and Phrases:'Completed Contract Method' and 'Deferred Revenue Expenditure Method of accounting - Distinction between in the context of calculation of income from chit fund scheme. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2008 INSC 261 |
Petitioner | Commissioner Of Income Tax, Chennai |
Respondent | M/s Bilahari Investment (p) Ltd. |
SCR | [2008] 3 S.C.R. 477 |
Judgement Date | 2008-02-27 |
Case Number | 1625 |
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