Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2002 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2002 (9) TMI 70 - HC - Income Tax"Whether, on the facts and in the circumstances of the case, the Tribunal was right in directing the Income-tax Officer to allow the deduction of only such amounts in respect of commission payable to Miss Nellie Melson during the relevant year, as were allowed to be remitted by the Reserve Bank of India in the relevant year?" - since the liability of the assessee to pay commission to the lady accrued under the agreement dated May 5, 1970, and the assessee was maintaining its accounts on the mercantile system of accounting, it was entitled to deduct such liability which had accrued during the period for which profits and gains were being computed and, therefore, the Tribunal was not right in law in restricting the deduction in respect of the commission to the amount actually remitted during the relevant year. - we answer the question referred in the negative, i.e., in favour of the assessee and against the Revenue.
|