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TMI Blog2019 (3) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... r accrual of expenses to take place, it must become due. In the present case, there was no accrual of the expenditure in the earlier year had not become due. It became due only in this year i.e. it crystallized during the previous year relevant to the subject assessment year. Thus the view taken by the Tribunal cannot be found fault with. No substantial question of law. - INCOME TAX APPEAL NO.182 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercantile system of accountancy? 3. The Respondent Assessee is a public limited company and is engaged in the business of production of sugar from sugarcane. For the subject assessment year, the Assessee filed its returns of income declaring loss of ₹ 41,38,497/. During the course of scrutiny assessment proceedings, the Assessing Officer found that Assessee had claimed prior period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MT. In the aforesaid circumstances the sugarcane farmers threatened the assessee to stop the supply/sale of sugarcane to the assessee in the previous year relevant to assessment year 2009-2010, unless they receive the same consideration as other factories had paid for the sugarcane in the earlier year. This threat of stoppage of supply/sale of sugarcane to the assessee (which would lead to stoppag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlier in the subject assessment year, thus, allowed the Respondent Assessee's Appeal. 5. Mr. N N Singh the learned counsel in support of the Appeal submits that the Respondent Assessee was following the mercantile system of accountancy. Therefore, these expenses ought to have been accounted for in the earlier year and could not have been claimed as expenses in a subsequent assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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