1999 (4) TMI 21

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....YASIMHA BABU J.---In respect of the cane purchased, the assessee which is a sugar mill had after the end of this year of account paid the purchase tax payable on that part of the price paid subsequent to the end of the accounting year. The assessee claimed that the additional price which it was bound to pay and had paid should also be allowed as a deduction. The Income-tax Officer was of the view ....

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....f Rs. 30 per metric tonne over and above the amount of Rs. 212 per metric tonne, which had already been paid by the sugar mills for the cane supplied during the previous year. The accounting year ended on September 30, 1981. It is also not in dispute that the amount so paid by the assessee was towards the price for the cane supplied to them and the assessee had also paid the purchase tax on that a....

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....mber 30, 1981. It is well settled that the liability for payment of tax, even though determined finally long after the end of the accounting year must be regarded as relating back to the time at which the liability for payment of tax had been incurred and that the date of determination of the final liability is not decisive as to the year for which the assessee can claim the deduction. The a....