https://www.taxtmi.com/caselaws?id=17916 The High Court upheld the validity of reopening the assessment under section 147(b) of the Income-tax Act based on new information. However, it ruled in favor of the assessee regarding the provision for purchase tax liability, stating it was an ascertained liability and should be allowed as a deduction. The court emphasized that the liability persists until legally nullified, supporting the assessee's prudent provision under the mercantile accounting system. The decision favored the assessee, allowing the deduction and highlighting the Department's ability to reassess in subsequent years if the liability ceases under Section 41(1). en-us Wed, 10 Jul 1996 00:00:00 +0530 Fri, 25 Sep 2009 15:51:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17916 The High Court upheld the validity of reopening the assessment under section 147(b) of the Income-tax Act based on new information. However, it ruled in favor of the assessee regarding the provision for purchase tax liability, stating it was an ascertained liability and should be allowed as a deduction. The court emphasized that the liability persists until legally nullified, supporting the assessee's prudent provision under the mercantile accounting system. The decision favored the assessee, allowing the deduction and highlighting the Department's ability to reassess in subsequent years if the liability ceases under Section 41(1). Case-Laws Income Tax Wed, 10 Jul 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17916