INDIAN COMMUNICATION NETWORK P LTD Vs. INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(IT)-1994-1-21
INCOME TAX APPELLATE TRIBUNAL
Decided on January 28,1994

Appellant
VERSUS
Respondents

JUDGEMENT

R.M. Mehta, Accountant Member - (1.) THIS appeal is directed against the order passed by the Commissioner of Income-tax (Appeals) raising for our consideration numerous grounds. In the original memorandum of appeal ground No. 10 reads as follows : "That the learned Commissioner of Income-tax (Appeals) has erred in not deleting Rs. 27,04,579 from the total income vis-a-vis valuation of closing stock."
(2.) This was supplemented with a "clarification ground" dated March 20, 1993 as under ; "It is contended that the authorities below should have recast the revenue account on 'cash basis' as per the mandate provided in Section 43B of the Income-tax Act and the resultant 'processed' profits alone should have been considered for the purposes of Sections 28 to 41." It was the assessee's case all along that the issue being raised was identical to the one considered by the Gujarat High Court in the case of Lakhanpal National Ltd. v. ITO [1986] 162 ITR 240 and adjudicated in the assessee's favour whereas the Tribunal in certain decisions delivered by it had decided the matter against the assessees being of the view that the decision of the Gujarat High Court [1986] 162 ITR 240 did not apply. As the issue raised involved legal principles as also those of accountancy having far-reaching consequences, it was decided to constitute a Special Bench by the President to hear the same, accepting the suggestion made by the Division Bench by its note dated August 26, 1992.
(3.) AT the outset, we propose to decide the main ground and the remaining grounds would be decided in their respective order.;


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