ASSISTANT COMMISSIONER OF INCOME TAX Vs. OSWAL SPINNING WEAVING MILLS LTD ; OSWAL SPINNING WEAVING MILLS VS ASSTT
LAWS(IT)-1994-6-1
INCOME TAX APPELLATE TRIBUNAL
Decided on June 10,1994

Appellant
VERSUS
Respondents

JUDGEMENT

J. KATHURIA, A.M. : - (1.) THESE cross appeals - one by the Revenue and the other by the assessee - relate to asst. yr. 1986-87.
(2.) We shall first take up the Revenues appeal (ITA No. 1320/Chd/89). The only effective ground in this appeal is against the deletion of disallowance of Rs. 4,292 on account of licence fee (Rs. 1,000) and production fees (Rs. 3,290). The Assessing Officer made the disallowance because these expenses related to earlier years. The learned CIT(A), however, deleted the disallowance on the ground that the liability with regard to these expenses was settled during the year relevant to asst. yr. 1986-87. The learned Departmental Representative submitted that the assessee was maintaining its books of account on mercantile basis and hence the expenditure pertaining to earlier years could not be considered as a charge on the profits for the year under consideration.
(3.) SHRI Hari Om Arora, the learned counsel for the assessee, strongly supported the impugned order.;


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