1989 (4) TMI 32

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.... CHAND MITAL J.-The main business of the assessee-concern consists of purchase of paddy, husking it and selling the rice. Ninety-five per cent. of rice had to be sold to the Government under the Punjab Rice Procurement (Levy) Order at specified rates. For the assessment years 1975-76 and 1976-77, the liability for payment of purchase tax accrued during the relevant accounting periods as the ass....

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....he assessment orders passed by the sales tax authorities during the period relevant to the assessment year 1977-78, on the ground that when an assessee follows the mercantile system of accounting, the deduction has to be claimed on the accrual of liability and relied upon certain decisions. Against the aforesaid order of the Income-tax Officer, the assessee took the matter in appeal and the Com....

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.... on in another assessment year, that makes no difference and in that year the deduction cannot be allowed. That case is fully applicable to the facts of the present case. We had also an occasion to deal with this type of matter in Sirsa Industries v. CIT [1989] 178 ITR 437 (P & H) and took the same view following the decision of the Supreme Court in Kedarnath Jute Manufacturing Co. v. CIT [1971] 8....

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....cisions which were cited on behalf of the assessee (i) Kalinga Tubes Ltd. v. CIT [1988] 169 ITR 374 (Orissa) ; and (ii) Shalimar Chemical Works Pvt. Ltd. v. CIT [1987] 167 ITR 13 (Cal), Both the cases are distinguishable. The first was the case of additional liability. According to the view taken in the second case, the crucial date for claiming deduction would be the date when the writ w....