B.P.Jeevan Reddy, C.J. - (1.) Under Section 256(1) of the Income-tax Act, 1961, the following question has been stated by the Income-tax Appellate Tribunal, Delhi Bench 'E': "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assesses was entitled to the deduction of a sum of Rs. 78,569, being 'the assessee's accrued and ascertained liability for the assessment year 1968-69 ?"
(2.) The assessment year concerned is 1968-69. By that year, Section 43B had not come into force. The assessee was maintaining his accounts on the mercantile basis ; therefore, purchase tax collected by him, which was payable by him but not paid during the relevant accounting year, is all the same deductible as held by this court in CIT v. Poonam Chand Trilok Chand [1976] 105 ITR 618 (All) and Addl. CIT v. Durga Prasad Kamta Prasad [1991] 188 ITR 573 (All).
(3.) Accordingly, the question referred is answered in the affirmative that is in favour of the assessee and against the Revenue.;