https://www.taxtmi.com/caselaws?id=18528 A provision for Central sales tax on inter-State sale of rubber was inadmissible once the Government order waived collection for the relevant period and the liability had ceased to exist. Under the mercantile system, a deduction can be claimed only where a real liability subsists; a provision for an extinguished liability cannot be allowed. The original assessment allowing the deduction was therefore erroneous and prejudicial to the Department, and the Commissioner validly exercised revisional power under section 34 to disallow the entire provision. The revision was upheld against the assessee. en-us Mon, 29 Jan 1996 00:00:00 +0530 Sun, 02 May 2010 23:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18528 A provision for Central sales tax on inter-State sale of rubber was inadmissible once the Government order waived collection for the relevant period and the liability had ceased to exist. Under the mercantile system, a deduction can be claimed only where a real liability subsists; a provision for an extinguished liability cannot be allowed. The original assessment allowing the deduction was therefore erroneous and prejudicial to the Department, and the Commissioner validly exercised revisional power under section 34 to disallow the entire provision. The revision was upheld against the assessee. Case-Laws Income Tax Mon, 29 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18528