TMI Blog2010 (1) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... cording to the assessee, as he was not aware of the actual liability on the last date of the accounting period, he claims this deduction only when the bills were submitted by the Corporation. The Assessing Officer has, however, held that as the assessee was following the mercantile system of accounting, the expenditure should have been claimed as deduction in the earlier year and not in the subseq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Nagpur (henceforth "the Tribunal") at the instance of the Revenue and the Tribunal has referred the following question of law for our opinion: "Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that payment of Rs. 1,37,767 made to Bhilai Engineering Corporation pertains to the financial year 1989-90, as they were incorporated in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he earlier year and not in the subsequent year and accordingly, disallowed the claim. The Commissioner of Income-tax (Appeals) confirmed the order of the Assessing Officer. However, the Tribunal reproducing the guidelines of the Institute of Chartered Accountants, held that in day-to-day business, it is not always possible to ascertain the liabilities of a particular day. In view of the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. The contention of the assessee that there was a delay and difficulty in ascertaining the precise quantum of liability cannot postpone the accrual of the liability in the mercantile system of accounting. 5. On the other hand, Shri Neelabh Dubey, learned counsel assisting the court in the matter, after going through the record, submits that there is no factual enquiry conducted by the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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