2001 (7) TMI 88 - HC - Income Tax

Summary

The High Court of Gujarat ruled in favor of the assessee, allowing a deduction of Rs.5,000 under section 80VV of the Income-tax Act, even though the amount was not paid by the assessee. The court held that the liability was incurred by the assessee in the relevant previous year, and it was not necessary for the expenditure to be actually paid unless following the cash system of accounting. The Tribunal's decision to allow the deduction was upheld. The judgment was delivered by Judges A. R. DAVE and D. A. MEHTA.