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2014 (2) TMI 1079 - HC - Income TaxDeduction u/s 43B of the Act – Basis of valuation – Held that:- The claim was made on the basis of a valuation which was disputed by the assessee - it was a factual dispute which needed adjudication - Once the claim was adjudicated, the assessee had the option to prefer an appeal, but before the time to prefer an appeal ran out the assessee chose to put an end to the controversy and paid the amount adjudicated and correspondingly claimed deduction – The decision in CIT vs. Orient Supply Syndicate [1981 (2) TMI 33 - CALCUTTA High Court] followed - the Division Bench took the view that the question whether the liability of the earlier years discharged subsequently can be allowed to be deducted is a question which would depend on the facts and circumstances of the case and the statutory provisions - the payment was made after adjudication and not during the relevant year - even before introduction of Section 43B, it could not have been said that in all cases the assessee, maintaining books of accounts in a mercantile system, could not be permitted to deduct the amount paid in respect of liability which was incurred in the earlier years – Decided in favour of Assessee.
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