https://www.taxtmi.com/caselaws?id=57195 The Tribunal allowed the appeal, deleting the addition of Rs. 4,534 for sales-tax liability in the assessment year 1982-83. It held that under the mercantile system of accounting, the accrued sales-tax liability should offset against trading receipts, resulting in no net addition to income. Citing the Supreme Court's decision in Chowringhee Sales Bureau P. Ltd. vs. CIT, the Tribunal emphasized that such liabilities are deductible even if unpaid. The enactment of section 43B in the IT Act clarified the treatment of unpaid liabilities, supporting the Tribunal's decision aligned with legal principles established by higher courts. en-us Tue, 20 Oct 1987 00:00:00 +0530 Wed, 08 Dec 2010 18:23:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57195 The Tribunal allowed the appeal, deleting the addition of Rs. 4,534 for sales-tax liability in the assessment year 1982-83. It held that under the mercantile system of accounting, the accrued sales-tax liability should offset against trading receipts, resulting in no net addition to income. Citing the Supreme Court's decision in Chowringhee Sales Bureau P. Ltd. vs. CIT, the Tribunal emphasized that such liabilities are deductible even if unpaid. The enactment of section 43B in the IT Act clarified the treatment of unpaid liabilities, supporting the Tribunal's decision aligned with legal principles established by higher courts. Case-Laws Income Tax Tue, 20 Oct 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57195