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TMI Blog1984 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessments for the assessment years 1972-73 and 1973-74 respectively ? 2. For the assessment year 1973-74 only: Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that there was no understatement of sales turnover by the assessee-company and that the amount of Rs. 6,20,845 was riot liable to be included in the assessee's trading receipts ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the addition of Rs. 5,34,522 on account of under valuation of closing stock is not called for ? 4. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the assessee is entitled to the deduction of Rs. 7,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se questions relate to the same matter and represent different aspects of the same question arising for consideration. A few facts may be noticed. The assessee carries on business in the manufacture and sale of sugar. The accounting year relevant for the assessment year 1973-74 ended on September 30, 1972. During the period October 1, 1971, to September 30, 1972, the assessee purchased 1,95,753 tons of sugarcane. Under a scheme drawn up by the State Government, the State Government directed the sugar manufacturers to part with a portion of the extra consideration received on the sale of sugar to the cane growers. Following the above scheme, the board of directors of the assessee-company passed a resolution on September 26, 1972, to pay to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble with reference to the resolution dated February 12, 1973, is stated to be Rs. 7,83,102 (the correct figure appears to be Rs. 7,83,012). The assessee-company claimed deduction of this amount out of its income from business for the assessment year under consideration. The claim was rejected on the ground that the amount became payable pursuant to the resolution on February 12, 1973, which was after the close of the accounting year and, therefore, the liability to pay the said amount did not accrue before the close of the accounting year relevant to the assessment year under consideration. The assessee-company carried the matter in appeal and it transpires that the Income-tax Appellate Tribunal accepted the claim of the assessee-company fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral meeting. It is not in dispute that the price of Rs. 94 per ton was accordingly determined with reference to the formula nor has it been denied that the deduction claimed at the rate of Rs. 94 is in respect of the quantity of sugarcane purchased during the accounting year relevant to the assessment year under consideration. On these admitted facts, the conclusion is irresistible that the difference between Rs. 90 which was tentatively determined on September 26, 1972, and Rs. 94 finally determined on February 12, 1973, accrued as a liability relating to the assessment year under consideration and the Tribunal rightly directed the allowance of such expenditure while computing the income for the assessment year 1973-74. We accordingly ans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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