HC accepts cash method of accounting in respect of money retained by customers for fulfilment of warranty

March 17, 2015[2015] 55 taxmann.com 158 (Gujarat)

IT : Where assessee was consistently following system of accounting of crediting MONEY retained by customers from sale proceeds as and when received and Assessing Officer accepted such method in earlier years, there was no need to disturb method of accounting followed by assessee

IT : If there was sufficient surplus fund at assessee's disposal for making any INVESTMENT and no nexus was established with expenditure incurred for earning exempt income, no disallowance could be made under section 14A