https://www.taxtmi.com/caselaws?id=36852 The High Court of ALLAHABAD ruled in favor of the department and against the assessee in a case addressing the disallowance of sales tax payments from earlier years and commission paid to employees based on net profit. The court held that sales tax liability arises at the time of the transaction, and under the mercantile accounting system, it cannot be claimed as a deduction for previous years. Additionally, excessive remuneration not aligned with genuine business needs can be disallowed, leading to the rejection of the increased salaries paid to employees by the assessee. The department was awarded costs and counsel's fees amounting to Rs. 200 each. en-us Mon, 03 Dec 1979 00:00:00 +0530 Thu, 25 Mar 2010 10:29:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36852 The High Court of ALLAHABAD ruled in favor of the department and against the assessee in a case addressing the disallowance of sales tax payments from earlier years and commission paid to employees based on net profit. The court held that sales tax liability arises at the time of the transaction, and under the mercantile accounting system, it cannot be claimed as a deduction for previous years. Additionally, excessive remuneration not aligned with genuine business needs can be disallowed, leading to the rejection of the increased salaries paid to employees by the assessee. The department was awarded costs and counsel's fees amounting to Rs. 200 each. Case-Laws Income Tax Mon, 03 Dec 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36852