2017 (4) TMI 1613

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....Appeal) No. 30 of 2016 With Tax Case (Income Tax Appeal) No. 8 of 2017 - -<br>Income Tax<br>Hon&#39;ble Shri Thottathil B. Radhakrishnan, Chief Justice And Hon&#39;ble Shri Justice P. Sam Koshy For the Appellant : Ms. Naushina Ali, Advocate. For the Respondent : Mr. S. Rajeshwara Rao, Advocate. ORDER ON BOARD PER THOTTATHIL B. RADHAKRISHNAN, C.J. 1. These Appeals under Section 260-A....

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....as to whether a particular amount which is subject matter of the appeal is to be treated as relatable to Value Added Tax (VAT) payable by the assessee and, if so, whether it has to be actually paid by him before filing of the return under the Income Tax Act. This question is relevant, having regard to the manner in which the question of law has been framed. The issue as to whether Section 43-B of ....

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....thority also noticed that it is an undisputed fact that the Appellant did not charge VAT to the Profit and Loss account. It was therefore noted by the First Appellate Authority that in such circumstances, the liability may still be unpaid, but it cannot be disallowed being not claimed as deduction in the Books of Accounts. 4. With the aforesaid fact situation, we are unable to hold that the Tri....

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....324, which make a nice distinction between Chowringhee&#39;s case and instances where Profit and Loss accounts and Service Tax accounts are maintained separately following mercantile system of accounting. As rightly noticed therein, it is not for the Income Tax department to make out a case relating to the correctness or otherwise of the mercantile system of accounting, resorted to and maintained ....