TMI Blog1999 (4) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ugar mill had after the end of this year of account paid the purchase tax payable on that part of the price paid subsequent to the end of the accounting year. The assessee claimed that the additional price which it was bound to pay and had paid should also be allowed as a deduction. The Income-tax Officer was of the view that the amount so paid cannot be deducted in the year in which the cane was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which had already been paid by the sugar mills for the cane supplied during the previous year. The accounting year ended on September 30, 1981. It is also not in dispute that the amount so paid by the assessee was towards the price for the cane supplied to them and the assessee had also paid the purchase tax on that additional price. In so far as the assessee was concerned the payment made was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though determined finally long after the end of the accounting year must be regarded as relating back to the time at which the liability for payment of tax had been incurred and that the date of determination of the final liability is not decisive as to the year for which the assessee can claim the deduction. The assessee maintains its accounts in the mercantile system. The liabilities which it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the profit is determined. The Tribunal, therefore, in our view, has rightly held that the quantification of the liability after the end of the year does not disentitle the assessee from claiming the deduction in this year. The assessee having accepted the liability being part of the price payable for the cane received in the preceding year and having paid the tax thereon the liability is dee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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