TMI Blog1973 (7) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that the assessee was not entitled to deduction of Rs. 31,675 being the excise duty actually paid by it in 1962, on the ground that the liability therefor had arisen in 1952 ? " - - - - - Dated:- 12-7-1973 - Judge(s) : P. GOVINDAN NAIR., GEORGE VADAKKEL. JUDGMENT The judgment of the court was delivered by GOVINDAN NAIR Actg. C.J. - The question raised in this case and referred to us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the calendar year. It claimed the sum of Rs. 31,675 paid as a deduction from its income for the accounting period in its assessment for the year 1963-64. This has been disallowed by the Tribunal on the ground that the liability to pay excise duty had arisen and had accrued in the year 1952, and that having followed the mercantile system of accounting, the liability cannot be taken into account in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting which is to be followed, the liability to pay Rs. 31,675 should have been claimed as a liability for the assessment year 1953-54. The liability of a past year cannot be taken into account for computing the income of a subsequent year. Nor can the income of a year other than the relevant year, whether that income accrued before or after the relevant year, be taken into account for computing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be unsafe to rely on English decisions which may be rendered on statutory provisions which may be different or on principles which are applied in the absence of statutory provisions. The danger has been pointed out by the Supreme Court in Commissioner of Income-tax v. A. Gajapathy Naidu, wherein Subba Rao J. expressed the view that the provisions of the Indian Income-tax Act have to be construed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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