https://www.taxtmi.com/caselaws?id=27084 The High Court held that the sum transferred to the profit and loss account by the assessee, initially collected as sales tax, was liable to tax during the assessment year in question under Section 41(1) of the Income-tax Act, 1961. The Court emphasized that the use of the mercantile system of accounting did not exempt the application of Section 41(1) since deductions for the sales tax had been claimed in preceding years. The Court directed the Tribunal to refer the question of law for opinion, affirming the taxation of the transferred sum in accordance with the Act. en-us Thu, 09 May 1985 00:00:00 +0530 Wed, 10 Feb 2010 16:04:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27084 The High Court held that the sum transferred to the profit and loss account by the assessee, initially collected as sales tax, was liable to tax during the assessment year in question under Section 41(1) of the Income-tax Act, 1961. The Court emphasized that the use of the mercantile system of accounting did not exempt the application of Section 41(1) since deductions for the sales tax had been claimed in preceding years. The Court directed the Tribunal to refer the question of law for opinion, affirming the taxation of the transferred sum in accordance with the Act. Case-Laws Income Tax Thu, 09 May 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27084