2001 (1) TMI 40

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....ing moved for reference under section 256(1) of the Income-tax Act, 1961 (in short "the Act"), the Income-tax Appellate Tribunal, Delhi Bench-B ("the Tribunal", in short), has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the learned Tribunal is correct in law in holding that the sum of Rs. 45,547 is allowable as s....

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....icer completed the, assessment for the assessment years 1972-75 and 1973-74 and raised a demand of Rs. 45,547 which was provided for and debited in the profit and loss account for the assessment year in question. The Income-tax Officer disallowed the claim. In appeal before the Commissioner of Income-tax (Appeals), ("the CIT(A)", in short) the order of the Assessing Officer was reversed. The Reven....

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....g the mercantile system of accounting and the order of the High Court was passed in October, 1974, therefore, the liability cannot said to have been accrued during the assessment year in question. We find that though the High Court passed the order in October, 1974, the Sales Tax Officer completed the assessment during the assessment year in question. Liability on the basis of the assessment or....