https://www.taxtmi.com/caselaws?id=36706 The High Court of Calcutta upheld the Tribunal's decision, allowing the provision for sales tax liability as a deduction for the assessee-company for the assessment year 1971-72. The Court affirmed that under the mercantile system of accounting, a genuine provision for business liabilities, including sales tax, is admissible for deduction, even if the tax is disputed or not yet paid. The Court's ruling was supported by legal precedents and emphasized the distinction between cases of provisions for liabilities in the mercantile accounting system and cases involving adjudication of enhanced compensation. en-us Tue, 08 Apr 1980 00:00:00 +0530 Tue, 23 Jul 2013 11:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36706 The High Court of Calcutta upheld the Tribunal's decision, allowing the provision for sales tax liability as a deduction for the assessee-company for the assessment year 1971-72. The Court affirmed that under the mercantile system of accounting, a genuine provision for business liabilities, including sales tax, is admissible for deduction, even if the tax is disputed or not yet paid. The Court's ruling was supported by legal precedents and emphasized the distinction between cases of provisions for liabilities in the mercantile accounting system and cases involving adjudication of enhanced compensation. Case-Laws Income Tax Tue, 08 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36706