COMMISSIONER OF INCOME TAX Vs. CHARANJIT SINGH KANWAR

JUDGEMENT

(1.) THIS order shall dispose of the above mentioned two Income Tax Appeals filed under Section 260 -A of the Income Tax Act, 1961 (for short 'the Act') against the order dated 20.03.2012 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (for short 'the Tribunal') in respect of the assessment year 2007 -08 raising the following substantial questions of law:

(2.) THE Commissioner of Income Tax (Appeals) as well as the Tribunal have returned the findings of fact relying upon the judgment of Hon'ble the Supreme Court in the case of CIT v. Realest & Services Ltd. 307 ITR (SC) 202 that method of accounting following consistently should not be disturbed because it was incorrect unless it could be shown that change in the method of accounting would result in gain for the Revenue. The Commissioner of Income Tax (Appeals) as well as the Tribunal has recorded finding that no useful purpose will be served by changing the method when net result of excluding the receipts pertaining to paths performed in the earlier years would be reduction of the income of the present assessment year without adding to the income to the same or larger extent in the income for paths booked in the subsequent years.