https://www.taxtmi.com/caselaws?id=39257 The court held that the sales-tax amount collected by the firm should not be treated as income for the assessment year 1968-69. The Tribunal allowed the firm's appeal, deducting both the sales-tax amount collected and the refund received from the assessable income, stating that sales-tax was a liability and did not form part of the income. The court emphasized the difference between cash and mercantile basis of accounting, affirming that under the mercantile system, liabilities are deductible in the year they arise. Therefore, the sales-tax amount collected was not includible in the firm's total income for that assessment year. en-us Mon, 15 Dec 1975 00:00:00 +0530 Wed, 14 Apr 2010 11:33:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39257 The court held that the sales-tax amount collected by the firm should not be treated as income for the assessment year 1968-69. The Tribunal allowed the firm's appeal, deducting both the sales-tax amount collected and the refund received from the assessable income, stating that sales-tax was a liability and did not form part of the income. The court emphasized the difference between cash and mercantile basis of accounting, affirming that under the mercantile system, liabilities are deductible in the year they arise. Therefore, the sales-tax amount collected was not includible in the firm's total income for that assessment year. Case-Laws Income Tax Mon, 15 Dec 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39257