1995 (8) TMI 43

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....is court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the sum of Rs. 24,887 did not form the trading receipts and, therefore, was not assessable income of the assessee ? " The assessee is a registered firm and derives income from commission agency and also from some business in its own account in the commodities, namely, sugar and....

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....ion for opinion. We have heard Sri Shekhar Srivastava, who appeared for the Revenue, and Sri Vikram Gulati, on behalf of the assessee. The question is as to whether the amount realised from the customer towards the mandi shulk although not spent by the assessee can be included in the income of the assessee. According to rule 68 framed under the Krishi Utpadan Mandi Samiti Adhiniyam, the market ....

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....ing, as the assessee was doing, is entitled to claim a deduction even though the expenditure is not actually incurred. It is enough if the liability for such expenditure accrues. The fact that the assessee did not pay the amount to the Government in the relevant accounting year did not alter the position. Following the decision we are of the view that the amount of Rs. 24,887 received by the petit....