1980 (9) TMI 153 - AT - Income Tax

Summary

The CIT, Tamil Nadu-III, Madras filed a Reference Application questioning the deletion of a sales-tax liability of Rs. 36,377 by the Appellate Tribunal for the asst. yr. 1974-75. The Tribunal held that the sales-tax liability was subsisting at the end of the accounting year and should be allowed as a deduction, despite a High Court decision against the tax payer. The Tribunal dismissed the Reference Application, stating that the liability's existence on the last day of the accounting year is crucial, and further developments should not impact the assessment.