1996 (3) TMI 37 - HC - Income Tax

Summary

The High Court of Kerala ruled in favor of the assessee, allowing the claim for purchase tax liability. The court found that the purchases were made for export, and the liability for purchase tax was wrongly disallowed by the Commissioner of Income-tax. The Tribunal upheld the deduction, stating that statutory liability cannot be wiped out even if under dispute. The court cited previous decisions to support the allowance of the deduction. The judgment was sent to the Income-tax Appellate Tribunal, Cochin Bench.