2010 (12) TMI 836

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....ile system of accounting and therefore, the said expenses should have been claimed in the previous year. The Commissioner of Income-tax (Appeals) confirmed this view of the Assessing Officer. However, in further appeal preferred by the assessee before the Income-tax Appellate Tribunal ("the Tribunal" in short), the Tribunal has reversed the order of the Assessing Officer as well as the Commissioner of Income-tax (Appeals) and allowed those expenses.   2. We may point out at this stage that even when the assessee is following the mercantile system of accounting, the explanation furnished by the assessee before the Assessing Officer and the Commissioner of Income-tax (Appeals), which was reiterated before the Tribunal was that the exp....

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....e bills were settled on August 16, 2003 and the relevant evidence is available at paper book pages 11 to 14. Interest paid to M/s. Poddar Pigments Ltd., Bombay, the account has been settled on November 3, 2003 and evidence is available at paper book pages 15 to 18. Similarly foreign tour expense of the managing director of Rs. 7,856 have been settled during the year. As regards the interest paid to LIC on debenture amounting to Rs. 20,98,130 and Rs.40,342 the relevant evidence for payment during the year is available at paper book pages 19 to 26. Moreover, the said payments are allowable deduction under section 43B(d) of the Act and on payment basis and the same cannot be disallowed under any circumstances. As regards excise duty adjustable....