IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income Tax Reference No. 549 of 1995 Date of decision: August 25, 2008 The Commissioner of Income Tax, Patiala. .. Applicant. v. The Punjab Small Industries & Export Corporation Limited, Chandigarh. .. Respondent. CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON'BLE MR. JUSTICE RAJESH BINDAL Present: Ms. Urvashi Dhugga, Advocate for the applicant. Mr. Akshay Bhan, Advocate for the respondent. .. Rajesh Bindal J. The following questions of law have been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, `the Tribunal') arising out of order dated 13.5.1995 in I.T.A. No. 989/Chandi/1989, for the assessment year 1985-86: “1. Whether on the facts and in the circumstances of the case, the ITAT was right in law in upholding the order of the CIT(A) deleting addition of Rs. 84,12,619/- made on account of interest receivable by the assessee on accrual basis ? 2. Whether on the facts and in the circumstances of the case, the ITAT was right in law in allowing change of method of accounting for part of the source of income ?” For the detailed reasons recorded in our judgment of even date in I.T.R. No. 72 of 1989 – The Commissioner of Income-Tax, Patiala v. M/s Punjab State Small Industries Corporation Ltd., Chandigarh, the questions referred to above, are answered against the Revenue and in favour of the assessee. The reference is disposed of accordingly. (Rajesh Bindal) Judge (Hemant Gupta) Judge August 25, 2008 mk