1970 (12) TMI 11

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....e of the Commissioner of Income-tax II, Calcutta. The assessment year concerned in this reference is 1956-57, the relevant previous year being 2011 Guzrati Dewali Sambat year corresponding to the period from 26th October, 1954, to 17th June, 1955. The assessee is Messrs. R. Shantilal and Company which was assessed in the status of an unregistered firm for the relevant assessment year, and which so....

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....ruary, 1955 ... 17,780 ----------- Total 47,505 Out of the claim for deduction of the aforesaid sum the Income-tax Officer only allowed Rs. 253 for 2008 Sambat year and Rs. 1,250 for Sambat year 2009 actually paid during the accounting year and disallowed the claim for the balance and added back the sum of Rs. 46,001 to the assessee's total income. On further appeal, the Appellate Assi....

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....g to the liabilities for the Sambat years 2008 and 2009 had been received by the assessee on the 8th February, 1955, the Tribunal held that the entire amount of Rs. 47,505 must be allowed as legitimate business expenses against the profits of the assessee of the Sambat year 2011. On the application of the Commissioner the following question has been referred to this court by the Tribunal, viz. ....

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....abilities of the two earlier years, 2008 and 2009 S. Y., are concerned, these are disputed liabilities for which no provision was made during the relevant accounting years and simply because the demand notices were received in the accounting year relevant to the assessment year concerned, it would not follow that the liability became an ascertained and undisputed liability in this year. There is n....