1997 (12) TMI 654 - HC - Income Tax

Summary

The High Court of Allahabad rejected the application under section 256(2) of the Income-tax Act, 1961 filed by the Commissioner, Meerut. The dispute involved the cancellation of an order passed by the Commissioner under section 263 regarding the allowance of a liability for intended expenditure of Rs. 4,25,000 claimed by the assessee. The Appellate Tribunal set aside the order under section 263, restoring the assessment order based on the certainty of the liability as per sale agreements. The Court held that the liability to incur the expenses was certain and not contingent, therefore no statable question of law arose from the Tribunal's decision.