1990 (11) TMI 124 - HC - Income Tax

Summary

The High Court of Allahabad ruled in favor of the assessee, a registered firm engaged in the purchase and sale of motor oil and parts, for the assessment year 1969-70. The Income-tax Appellate Tribunal justified the deduction claimed by the assessee for the difference amount not paid to the Sales Tax Department, as the assessee maintained accounts on a mercantile basis. The court referenced relevant case law and noted that the deduction should be allowed when the liability accrues, regardless of actual payment in that year. The court also mentioned the introduction of section 43B in 1984, which requires tax payments to be deducted only in the year of actual payment.