TaxTMI 
TaxTMI 
1979 (7) TMI 82
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....e assessee is a limited company engaged in the business of manufacturing glasses. It follows the calendar year as its year of account. For the year 1963, the Assistant Labour Commissioner by an order dated November 18, 1965, directed the assessee to pay bonus to its workers. It appears that subsequently at the instance of the assessee by an order dated December 24, 1965, the assessee was given tim....
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.... 1966-67, and not in the year under consideration and as such for this year it was not an allowable deduction. In this view of the matter, the order of the AAC in this behalf was reversed and that of the ITO was restored. At the instance of the assessee, the following question of law has been referred for the opinion of this court : " Whether, on the facts and in the circumstances of the cas....
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....rcantile accounting system net profits or losses are calculated after taking into account all the income and all the expenditure relating to the period, whether such income has actually been received or not and whether such expenditure has been actually paid or not. There being no dispute in the instant case that the assessee follows mercantile accounting system and that the liability to pay the d....
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....ade to the proviso to s. 145(1) of the Act but that also does not help the assessee. This sub-section provides for the method of accounting and it says that income chargeable under the head " Profits or gains of business or profession " or " Income from other sources " shall be computed in accordance with the method of accounting regularly employed by the assessee. The proviso reads : " Provide....