9911796707
TMI Blog2000 (8) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question, pertaining to the assessment year 1974-75, has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench-B, New Delhi (for short "the Tribunal") : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 31, 1972, and since the accounts were closed on June 30, 1972, this amount was payable by the assessee as the assets and liabilities of the proprietorship concern were taken over. The Appellate Assistant Commissioner of Income-tax (in short "the AAC"), found that the liability related to the period from April 1, 1972, to December 31, 1972, while the concern was proprietorship. The matter was ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trade." We find that the Tribunal has not indicated any reason as to why it felt that the amount was allowable. Whether it was on the ground of commercial expediency was not relevant in the background that the claim related to an earlier period and the liability did not accrue during the assessment year in question. That being the position our answer to the question is in the negative, i.e., in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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