TaxTMI 
TaxTMI 
1994 (1) TMI 22
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....had taken a property on rent for the purpose of business, on an agreement dated October 27, 1966, for a period of four years, paying a rent of Rs. 3,000 per mensem. This agreement provided that on termination, the tenant should vacate the premises, and in default, he would pay an amount of Rs. 5,000 per mensem till he vacates the property. The assessee, however, provided in the accounts for the ea....
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....ses. The assessee appealed further. The Appellate Tribunal found that the liability to pay these amounts accrued only in the year in question on account of the decree of the court and, therefore, the deduction was admissible under section 37 of the Income-tax Act. At the instance of the Revenue, the following question has been referred : " Whether, on the facts and in the circumstances of the c....
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....ord having disputed the claim of the assessee of the renewal of the lease, the matter had gone to the court, and the additional amount had been decreed. The liability to pay the additional amount had thus accrued only when the court had decreed the suit. It is stated that when the matter was taken up on appeal, the assessee had subsequently compromised by accepting payment of rent for these years,....