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TMI Blog2015 (1) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... he existence or absence of entries in the books of account be decisive or conclusive in the matter. The Tribunal was right in confirming the order of the Commissioner of Income-tax (Appeals) and in directing the Assessing Officer to allow the deduction of the liability. - Decided in favour of assessee. - Tax Appeal No. 1827 of 2005, Tax Appeal No.1738 of 2005 - - - Dated:- 23-12-2014 - K. S. Jhaveri And K. J. Thaker,JJ. For the Petitioner : Mr. Sudhir M. Mehta For the Respondents : Mrs. Swati Soparkar JUDGMENT (Per : Honourable Mr. Justice KS Jhaveri) 1. The facts of these appeals and the question of law involved in these appeals are identical, therefore, both these appeals are being disposed of by this common judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of the revenue. 6. While admitting these appeals on 02.02.2007, the Court had formulated the following substantial question of law:- Whether on the facts and in the circumstances of the case, and in law, the Income-tax Appellate Tribunal is right in confirming the order of the Commissioner of Income-tax (Appeals) directing the Assessing Officer to allow the deduction of the liability even though neither the provision for the same nor the payment of the same has been made by the assessee during the year under consideration and though the provision was made and payment thereof was made in the assessment year 2000-2001? 7. Learned advocate for the appellant-revenue has submitted that the Tribunal has committed an er ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be allowed by the Income-tax Officer, the assessee will lose the right of claiming or will be debarred from being allowed that deduction. Whether the assessee is entitled to a particular deduction or not will depend on the provision of law relating thereto and not on the view which the assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conclusive in the matter. The assessee who was maintaining account on the mercantile system was fully justified in claiming deduction of the sum of ₹ 1,49,776/- being the amount of sales tax which it was liable under the law to pay during the relevant accounting year. It may be added that the liability remained intact even after the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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