TMI Blog2016 (7) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... the bill was received in April, 1995. When the assessee maintains his books of accounts on mercantile basis, then he has to make provision for the liability already incurred irrespective of whether the bill was received. Nothing turns on the receipt of the bill. Supposing in a case no bill is received, can it be said that the liability has not been incurred ? Therefore, the ground assigned by the Assessing officer, CIT and the Tribunal is altogether untenable. In that view of the matter, the appeal is allowed. Both the questions are answered accordingly in favour of the assessee. - ITAT 112 of 2011, ITA 124 of 2011 - - - Dated:- 27-6-2016 - Girish Chandra Gupta And Asha Arora, JJ. For the Assessee : Mr. J.P.Khaitan,Sr. Advocate Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t July, 1993 to February, 1995. Though the claim was made, but the quantification of the claim was not made. The quantification was made at the rate of 15 p. per unit by a letter dated 8th March, 1995. By the letter dated 8th March, 1995, Bihar State Electricity Board also permitted the consumers to pay the arrears in instalments. Since the quantity of units consumed was known and the applicable rate of surcharge was made known by the letter dated 8th March, 1995, the assessee during the financial year 1994-95 made provision for a sum of ₹ 16,86,355/-. The Assessing Officer was of the opinion that the deduction was not permissible in the financial year 1994-95 corresponding to assessment year 1995-96 because the bill was, in fact, rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rational surcharge in suitable instalments starting from the month of March, 1995 i.e. in no case the instalment should go beyond May, 1996. We, as such, are unable to accept the submission that there was any dispute. It appears that the CIT (Appeal) and the Assessing Officer and also the learned Tribunal laid stress on the fact that the bill was received in April, 1995. When the assessee maintains his books of accounts on mercantile basis, then he has to make provision for the liability already incurred irrespective of whether the bill was received. Nothing turns on the receipt of the bill. Supposing in a case no bill is received, can it be said that the liability has not been incurred ? Therefore, the ground assigned by the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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