1990 (11) TMI 124

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....r section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has stated the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in reversing the finding of the Appellate Assistant Commissioner that the assessee can claim deduction only for actual payments made in one financial year less realisations from the custom....

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....l held, on further appeal, that since the liability is there and also because the assessee is maintaining its accounts on mercantile basis, the addition of the said difference amount was not warranted. Thereupon, the aforesaid question was referred. Learned counsel for the Revenue relied upon the decision of the Supreme Court in Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542 and of the....

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....ureau P. Ltd. v. CIT [1977] 110 ITR 385, after noticing the decision of the Supreme Court in Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542. Indeed, the decision of the Calcutta High Court is with respect to the same assessee, who was concerned in Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542. Since the assessee herein was maintaining accounts on mercantile basis, the additi....