1996 (3) TMI 106

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....price collected in excess of the price fixed by the Government ? " The assessment year concerned is 1980-81. The relevant accounting period ended on June 30, 1979. The assessee is a registered co-operative society formed in 1966 with the object primarily to co-ordinate and facilitate the working of affiliated societies and to assist in the promotion and development of consumer co-operation. It is sponsored by the Government of Kerala. The main activities of the assessee are to purchase consumable goods from production centres and distribute the same for sales through district and primary co-operative societies and through retail outlets. During the accounting period relevant to the assessment year in question, as per the orders of the Gov....

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....In the assessment proceedings evidenced by annexure "A", the assessee claimed deduction of the said amount on the basis of the provision so made stating that there is a liability to the State Government in regard to the excess amount collected. The assessing authority rejected the said claim on the ground that the liability, if any, had arisen only after the close of the accounting period and that too only by virtue of the Government order dated August 17, 1979. The detailed reasons are contained in annexure "A" under item 7. On appeal by the assessee, both the Appellate Assistant Commissioner of Income-tax (Appeals) and the Appellate Tribunal confirmed the order of the Income-tax Officer and dismissed the appeals. The short question arisi....