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2005 (9) TMI 49 - HC - Income TaxContractual liability - car price difference - assessee was responsible for making the payment of the differential amount and the assessee has not accepted such liability - "Whether Tribunal was justified in allowing the assessee's claim of Rs. 2,76,419 representing car price difference, holding that the liability accrued and arose during the accounting period relevant to the assessment year under consideration as a result of final agreement dated September 20, 1981?" - in the present case the liability was not in the nature of statutory liability. The demand raised by M/s. Premier Automobiles Ltd. was disputed by the assessee which was in the nature of contractual liability which was finally settled only on September 20, 1981, and thus the liability to pay accrued only on September 20, 1981, relating to the year under consideration and has been rightly held as allowable deduction by the Tribunal in the year under consideration
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