TaxTMI 
TaxTMI 
1994 (7) TMI 72
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....ned counsel for the assessee. Learned counsel for the Revenue seeks the following questions to be referred by this court : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law to hold that it was a clear liability and thus allowable as deduction ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellat....
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....aid by the assessee and the one fixed by the Central Government. The assessee, however, did not pay the enhanced price and on a writ petition, succeeded in securing a decision of the High Court, Allahabad, in its favour. The Central Government, in its turn, preferred an appeal before the Supreme Court. Since the assessee-company had not paid the difference in cane price as above and that the matte....
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....iculture and Irrigation and, therefore, is clearly a liability which is allowable. Reliance has been placed on the decision of the Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd. [1971] 82 ITR 363. The contention on behalf of the Revenue is that earlier the Tribunal rightly held that the question of allowing deduction shall be subject to the decision of the Supreme Court which is pendin....
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....n and was insisting that the assessee was liable to pay the excise duty. . . . The company is following the mercantile system of accounting and it can legitimately claim deduction in respect of a business liability even if such liability has not been quantified or paid. In Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR 363, the Supreme Court held that an assessee who follows the mercantile sys....