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TMI Blog1990 (10) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... the year in which it was ascertained notwithstanding the fact that the said Act of 1954 was struck down as void and unconstitutional by the hon'ble Supreme Court on the 26th September, 1960 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was not entitled to claim deduction of its liability under the Assam Taxation (on Goods Carried by Road or Inland Waterways) Act, 1954, in computing its business income for the assessment year 1976-77 ? " Shortly stated, the facts are that the assessee is a non-resident company and its method of accounting is mercantile. In the course of the assessment proceedings for the calendar year 1975 corresponding to the assessment year 1976 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t also as void by a judgment delivered on August 1, 1963. Subsequently, however, the Supreme Court, by a judgment delivered on December 13, 1963, declared the 1961 Act as valid. In the meantime, the assessee-company had filed a revision petition against the assessments made upon it in 1958 under the Act of 1954. It was the case of the assessee-company that it was not liable to be assessed at all under the Act of 1954. This revision petition was disposed of by the Commissioner of Taxes, Assam, on January 2, 1975. He upheld as valid the assessments made upon the assessee-company under the Act of 1954 for the period ending September 30, 1956. Since the revision order dated January 2, 1975, quantified and fixed the liability of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax (Appeals), by his order dated September 3, 1985, again rejected the submissions of the assessee-company mainly on the ground that no provision was made by the assessee-company in respect of such liability in its accounts for the calendar year 1975. On further appeal to the Income-tax Appellate Tribunal, the Tribunal upheld the contention of the Revenue that the said liability arose in the year 1958 and that the assessee-company was not entitled to any deduction in respect thereof in its assessment for the calendar year 1975 corresponding to the assessment year 1976-77. It may also be mentioned that the Tribunal, by its order dated November 7, 1986, passed in respect of the assessment year 1977-78 has, inter alia, observed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sapprehension or mistake, fails to make an entry in the books of account and although, under the law, a deduction must 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." Now, turning to the other contention in this case, the Act of 1954 having been declared void by the Supreme Court by its judgment delivered on September 26, 1960, all assessments made under the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the contribution related to earlier years. On further appeal, the Tribunal found that though this was a statutory liability under the Employees' Provident Funds Act to make contributions, it was never enforced under the Act in the earlier years, and it was only in the year under appeal that the Regional Provident Fund Commissioner called upon the assessee to make statutory contributions for the entire period from November, 1957, and that since the demand for the statutory contribution was made by the authorities for the first time during the year under appeal, the entire amount paid in that year was an allowable a suction. A letter addressed to the assessee by the Regional Provident Fund Commissioner indicated that a decision was pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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