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2014 (12) TMI 61 - HC - Income TaxAddition for purchasing gas deleted - Whether the Tribunal has substantially erred in law in deleting the addition made in respect of liability for purchasing gas from ONGC – Held that:-Following the decision in COMMISSIONER OF INCOME TAX Versus MAHENDRA MILLS LIMITED [2009 (7) TMI 87 - GUJARAT HIGH COURT] - the assessee has been following mercantile method of accounting - the Gas was supplied for the respective years - uncertainty and difficulty or the pendency of litigation relating to estimation or the pendency of litigation relating to estimation of the purchase price or fixing of purchase price would not convert the accrued liability into a contingent liability and since there remained no uncertainty or difficulty in estimation of the amount of such liability which had accrued in the respective assessment years of supply of Gas, the deduction would be allowable for the respective years - since liability of assessee was contractual which came to be crystallized by virtue of decision of Supreme Court by fixing price of gas supplied by ONGC, in such a situation the conclusion of the Tribunal that deduction in respect of purchase price was to be allowed in respective years when supply of gas was received on basis of price which had been finally determined by Supreme Court is justified – thus, the order of the Tribunal is upheld – Decided against revenue.
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