2003 (9) TMI 35 - HC - Income Tax

Whether the Tribunal was correct in holding that the claims of the assessee for deduction on account of dues demanded by the Electricity Board for earlier years which have not yet been fully ascertained and also had been all along disputed by the assessee could be allowed in the AY 1976-77 specially when the assessee observed the mercantile system of accounts and had made no provision in the years of demands? - Tribunal in our opinion has rightly held that the assessee-firm is eligible to claim the amount to the extent these are ascertained against the assessee s income pertaining to the relevant assessment year.

Summary

The High Court of Allahabad ruled in a 2003 case that an assessee can claim deduction for dues demanded by the Electricity Board, even if disputed, as long as they are ascertained against the income for the relevant assessment year. The Tribunal's decision was upheld in favor of the assessee.