COMMISSIONER OF INCOME TAX Vs. DELICIOUS CASHEW COMPANY

JUDGEMENT

(1.) AN answer to the following two questions is the expectation in these references :

(2.) THE assessee is a registered firm carrying on business of export of cashew kernels. For the assessment year 1981-82, there is a debit entry for Rs. 6,22,249 whereas for the assessment year 1982-83 it is for Rs. 5,42,798. THEse two entries relate to the liability of the assessee as regards payment of purchase tax on the purchase of raw cashewnuts. As this is a liability for payment of purchase tax, this was allowed by the Income-tax Officer-the trial authority.

(3.) THE Tribunal in paragraph 6 of its order considered the question and in that context observed that a statutory liability cannot get wiped out although being under dispute at the relevant time and consequently entitlement to deduction even in the situation of a context, levy of purchase tax, the deduction proceeds even in such a situation as a consequence. THE Tribunal observed that this situation even required 1984 amendment by introduction of Section 43B in the context.