https://www.taxtmi.com/caselaws?id=9659 The High Court of Allahabad ruled in favor of the assessee, affirming the Tribunal's decision to allow the deduction for the sales tax liability and penal interest amount under the Income-tax Act, 1961. The Court held that the liability for the amount arose in the assessment year in question, justifying the deduction. The Revenue's argument that the deduction should only be allowed when the liability accrued was dismissed, emphasizing that the amount had been realized from customers and paid to the authorities separately from the admitted tax liability. No costs were awarded as nobody appeared on behalf of the assessee. en-us Tue, 10 Aug 2004 00:00:00 +0530 Sun, 28 Jun 2009 12:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9659 The High Court of Allahabad ruled in favor of the assessee, affirming the Tribunal's decision to allow the deduction for the sales tax liability and penal interest amount under the Income-tax Act, 1961. The Court held that the liability for the amount arose in the assessment year in question, justifying the deduction. The Revenue's argument that the deduction should only be allowed when the liability accrued was dismissed, emphasizing that the amount had been realized from customers and paid to the authorities separately from the admitted tax liability. No costs were awarded as nobody appeared on behalf of the assessee. Case-Laws Income Tax Tue, 10 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9659