https://www.taxtmi.com/caselaws?id=18376 A sales tax liability claimed as a business deduction was disallowed because the underlying sales were found not to be genuine. Once the factual finding of no genuine sales remained undisturbed, no deductible sales tax liability could arise in computing business income. The assessee's use of the mercantile system of accounting did not alter that result, as accounting method cannot create a deduction where the basic transaction itself is fictitious. The question was therefore answered against the assessee and in favour of the Revenue. en-us Thu, 07 Mar 1996 00:00:00 +0530 Wed, 30 Sep 2009 14:24:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18376 A sales tax liability claimed as a business deduction was disallowed because the underlying sales were found not to be genuine. Once the factual finding of no genuine sales remained undisturbed, no deductible sales tax liability could arise in computing business income. The assessee's use of the mercantile system of accounting did not alter that result, as accounting method cannot create a deduction where the basic transaction itself is fictitious. The question was therefore answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Thu, 07 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18376