TaxTMI 
TaxTMI 
2000 (11) TMI 126
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.... following question has been referred for the opinion of this court by the Income-tax Appellate Tribunal, New Delhi (in short the "Tribunal"), under section 256(1) of the Income-tax Act, 1961 (in short the "Act") : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in allowing the assessee's claim for deduction to the extent of Rs. 22,88,905 as representing a lia....
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....owed the mercantile system of accounting and its previous year ended on Diwali, 1974. The assessee raised a debit of Rs. 38,56,618 as provision for wages and bonus payable to the workers in terms of the Beedi and Cigar Workers (Conditions of Employment) Act, 1966 (in short, the "Beedi Act"), which received the Presidential assent on December 30, 1966. The assessee had its registered office in Delh....
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....after the apex court's judgment, liability was quantified and deduction was claimed. As noted above, the Income-tax Officer did not accept the stand on the ground that the liability for two previous years accrued during those years, and not during the year under consideration. The matter was carried in appeal before the Appellate Assistant Commissioner (in short, "AAC"). He dismissed the appeal. T....
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....ubmitted that in view of the settled position of law as laid down by the apex court in Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR 363, there is no scope for adopting the view as done by the Tribunal. Learned counsel for the assessee, on the other hand, submitted that the liability was crystallised during the year in question after the decision of the apex court and, therefore, the Tribunal ....