1997 (11) TMI 95

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.... referred for our opinion : "Whether, on the facts and in the circumstances of the case and on a correct interpretation of the relevant provisions of law, the Tribunal was justified in holding that sales tax liability amounting to Rs. 2,59,361 accrued during the previous year relevant to the assessment year 1978-79 and in that view sustaining the order of the Commissioner of Income-tax (Appeals....

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....ction, so was the reasoning of the Income-tax Officer. The Commissioner of Income-tax (Appeals) agreed with the assessee and allowed the liabilities. The Tribunal upheld the findings of the Commissioner of Income-tax (Appeals). In a case where the assessee maintains mercantile system of accounting undoubtedly the liability to pay sales tax accrued the moment the sale or purchase transaction is ....