1989 (5) TMI 34

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....D MITAL J. -The assessee was maintaining the mercantile system of accounting. Liability to pay sales tax during the period relevant to the assessment, years 1969-70, 1970-71 and 1971-72 accrued every month on the monthly turnover. It was not debited in the account books nor was deduction claimed in those years. For the aforesaid years, sales tax was actually paid during the period relevant to the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ear 1977-78. As a result, he set aside the order of the Income-tax Officer and held that the deduction was not allowable. Against the aforesaid order, the assessee went up in appeal before the Income-tax Appellate Tribunal, Delhi (hereinafter referred to as "the Tribunal"). The Tribunal followed the decision of the Gauhati High Court in CIT v. Nathmal Tolaram [1973] 88 ITR 234, and allowed reli....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 234, and held on some what similar facts that the purchase tax liability relating to the assessment year 1967-68 for which demand notice was served on the assessee on April 27, 1970, was not an allowable deduction in the assessment year 1971-72 as the assessee was following the mercantile system of accounting. We had also occasion to deal with this matter in Income-tax Reference No. 56 of 1983....