1978 (11) TMI 23

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....NDRA C.J.--The assessee is a registered firm. It had to pay a sum of Rs. 16,486 as employees' contribution under the Employees' Provident Funds Act, 1952, for the period 1962 to December, 1970. It claimed this amount as an allowable expense in the assessment year 1972-73 for which the financial year 1971-72 was the accounting period. It appears that on 17th August, 1965, the Regional Provident ....

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....see maintained its accounts on the mercantile system. Under it, the liability becomes an expense the moment it accrues. The liability to pay contribution under the Employees' Provident Funds Act accrued from year to year during the period 1962 to 1972, which could have been claimed as an allowable deduction in each of these years. For the assessee, it was contended that since the liability was ....

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....the final date of quantification of the liability is relevant or material does not, as a matter of fact, arise. The Tribunal, in our opinion, was justified in negativing the claim of the assessee. At the instance of the assessee, the Tribunal has referred the following question of law for our opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified i....