- (1.) The following question of law has been referred for our opinion : Whether, on the facts and in the circumstances of the case and on a correct interpretation of the relevant provisions of law, the Tribunal was justified in holding that sales tax liability amounting to Rs. 2,59,361 accrued during the previous year relevant to the assessment year 1978-79 and in that view sustaining the order of the Commissioner (Appeals) allowing the assessee's claim for the said deduction ?
(2.) The assessee is a limited company and derives income from textiles. The point in dispute is with regard to deduction of Rs. 2,59,361 under the heading Sales Tax. The assessee claimed the aforesaid deduction for the assessment year 1975-76 and for the assessment years 1961-62 to 1965-66 as per the details hereinbelow : JUDGEMENT_39_LAWS(CAL)11_1997.html
(3.) The Income Tax Officer did not allow the deduction in respect of the aforesaid liabilities on the ground that they related to earlier years and did not accrue in the assessment year under reference. Since the assessee had not made any provision, therefore, it was not entitled to deduction, so was the reasoning of the Income Tax Officer. The Commissioner of (Appeals) agreed with the assessee and allowed the liabilities. The Tribunal upheld the findings of the Commissioner (Appeals).;