https://www.taxtmi.com/caselaws?id=27521 The High Court dismissed the tax case petition, upholding the mercantile accounting method used by the assessee in treating the surplus amount in the sales tax account as not taxable income. The Court emphasized that if the assessee maintains accounts on a mercantile basis for sales tax, the accrued sales tax liability should be deducted, not just the actual payments made to the Sales Tax Department. The judgment clarified the significance of the accounting method in determining the treatment of sales tax collections, affirming that under a mercantile system, the entire sales tax accrued liability should be deducted for taxation purposes. en-us Tue, 25 Oct 1983 00:00:00 +0530 Sat, 13 Feb 2010 13:26:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27521 The High Court dismissed the tax case petition, upholding the mercantile accounting method used by the assessee in treating the surplus amount in the sales tax account as not taxable income. The Court emphasized that if the assessee maintains accounts on a mercantile basis for sales tax, the accrued sales tax liability should be deducted, not just the actual payments made to the Sales Tax Department. The judgment clarified the significance of the accounting method in determining the treatment of sales tax collections, affirming that under a mercantile system, the entire sales tax accrued liability should be deducted for taxation purposes. Case-Laws Income Tax Tue, 25 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27521