2002 (8) TMI 26

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.... appeal is directed against the order of the Tribunal dated January 16, 2001. The only issue for our consideration in this appeal is whether the Tribunal was justified in restoring the view taken by the Income-tax Officer regarding disallowance of the expenses accrued on account of agreement with the State Government regarding restoration of the land in its original shape. There was an agree....

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....that the liability does accrue. He allowed the claim of the assessee. In appeal before the Tribunal, the Tribunal restored the view taken by the Assessing Officer. Heard learned counsel for the parties. The submissions made before the Commissioner of Income-tax (Appeals) in writing read as under: "It is submitted that the assessee-company is engaged in open cast mining of soapstone crude. Th....

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....estimated cost of their refilling comes to Rs. 1,51,360 and, therefore, the liability in respect of the same had been provided for as per the clause 2 of Part V of the lease agreement. Thus the cost of refilling of the above is an ascertained liability and is eligible for deduction because the assessee-company observes mercantile system of accounting." It has also been brought to our notice tha....