1982 (1) TMI 5

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....d by G. P. SINGH C. J.-This is a reference made under s. 256(1) of the I.T. Act, 1961, referring for our answer the following four questions of law: " 1. Whether the Income-tax Appellate Tribunal is justified in considering and deciding the ground of method of accounting suo motu which has neither been taken by the Department in the memorandum of appeal nor at the time of hearing ? 2. Whe....

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....sed sales tax along with the price. The sales tax so realised was not paid to the sales tax dept. in the previous year. The question, therefore, was whether the amounts of sales tax and refugee tax could be allowed as deductions. The assessee's contention was that it maintained accounts according to mercantile system and was, therefore, entitled to the deduction of the amounts of sales tax and ref....

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....e method of accounting for one part of his business or one class of customers and a different method for another part of his business or another class of customers ; and if he employs such different methods regularly and consistently, the profits would have to be computed, in accordance with the respective methods (See Kanga and Palkhivala's Income-tax, 7th Edn., Vol. 1, p. 869). The crucial quest....

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.... v. CIT (1974] 97 ITR 615 (SC) and Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542 (SC). These cases are distinguishable, because it was not argued in them that the assessees had maintained their accounts according to mercantile system. For the reasons stated above, we answer the questions referred as follows : Q. No. 1 : The Tribunal was justified in considering the question of me....