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2004 (9) TMI 62 - HC - Income TaxSales tax liability - amount paid towards E.S.I. (Employees' State Insurance) - Income-tax Officer declined the assessee's claim of additional sales tax liability on the ground that it was following the mercantile system of accounting and the amount related to the earlier assessment years and not for the assessment year in which the deduction is being claimed - "1. Whether Tribunal was in law justified in holding that the assessee's claim representing sales tax liability relating to earlier years were an allowable deduction in the years under consideration, viz., assessment years 1976-77, 1977-78, 1978-79 and 1979-80? - We answer this question of law in the affirmative, i.e., in favour of the assessee and against the Revenue - 2. Whether the Tribunal was correct in allowing the assessee's claim for a sum of Rs. 82,077 as liability raised against him by an order of the Regional Director, E.S.I.? - We are of the opinion, that the Tribunal was not justified in allowing the deduction of Rs. 82,077 during the assessment year 1976-77 as it related to the liability which had accrued in the previous years relating to the earlier assessment years and not in the assessment year in question – This question is answered in the negative, i.e., in favour of the Revenue and against the assessee
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