TMI Blog1952 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 66(1) of the Indian Income-tax Act the following question has been referred to us:- Whether on the facts stated there was any evidence to prove that the expenditure to the tune of ₹ 1,39,561 on account of purchase of coal was incurred before 31st October, 1943, and that the liability of the assessee to pay the same was ascertained or ascertainable before that date? The relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a coal crisis in Kanpur in 1943 and as a result of the coal crisis the various firms situate there entered into a pool association and it was the duty of this association to allot to each firm coal necessary for its requirements. Such allotments were made periodically. The assessee claimed that it was the association which fixed the price of coal and it was the association which sent the invoic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en coal had been received in June, July and August, 1943. The expenses were definitely incurred before 31-10-43 and the liability to pay the sum could be easily ascertained if the assessee company had cared to do so. Under Section 32 of the Indian Sale of Goods Act (III of 1930) unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions. From the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar previous to the relevant account year. The question as to when the liability to pay the price arose was a question of law covered by Section 32 of the Indian Sale of Goods Act and it was for the assessee, if he wanted to prove that there was an agreement to the contrary, to give such evidence. This is our answer to the reference. The Department is entitled to its costs which we assess at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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