Case Law Analysis
|Madras High Court
Hybrid Accounting Permissible for Construction Firms | Tax Motive Irrelevant If Transactions Are Lawful : Madras HC
Madras High Court ruled that construction firms can adopt hybrid accounting methods and validated sale-and-leaseback transactions for cinematograph films, holding that tax-saving motives alone cannot invalidate lawful, documented transactions. The judgment reinforces the principle that the mercantile system allows flexibility in matching income and expenses, provided the transactions are genuine and properly recorded.