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Section 145 of the Income-tax Act, 1961 - Method of accounting - Change of - Assessment years 1997-98 to 2001-02 - Whether there is no provision of law that creates an embargo against credit of amount to which assessee becomes entitled to after system of accounting is changed - Held, yes - Whether change of system of accounting does not divest assessee from receiving benefits which have already accrued to him in previous years - Held, yes Ms. Veena Mandlik for the Appellant. ORDER S.K. Kulshrestha, J. - This appeal has been filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') against the order dated 19-10-2006 of the Tribunal in ITA Nos. 739/Ind./2005, 740/Ind./2005, 741/Ind./2005, 742/Ind./2005 and 743/Ind./2005 for the assessment year 1997-98, 1998-99, 1999-2000, 2000-01 and 2001-02. The department has raised the following question proporting to be a question of law:- "Whether on the facts and in circumstances of the case, the ITAT is justified in law in confirming the order passed by the CIT(A), without appreciating the fact that the assessee is following cash system of accounting and prior period's expenses cannot be allowed in the assessment year under reference ?" 2. Learned Counsel for the revenue contends that since the assessee had switched over to cash system of accounting with effect from 1-4-1990 from that of Mercantile system, the assessee was not entitled to the benefits that had already accrued in the previous years while the assessee was following mercantile system. 3. The Tribunal repelled the contention of the revenue that on shifting to the cash system of accounting the assessee was not entitled to what he would have got had he not changed the system of accounting. The relevant observations contained in the order of the Tribunal are extracted hereunder:- "2.3 We have heard the contentions of both the parties. These appeals are against the order passed under section 143(3) of the Income-tax Act. It is an undisputed fact that the assessee has switched over the system of accounting from Mercantile system to cash system with effect from assessment year 1991-92. The change in the system of accounting was duly…

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