COMMISSIONER OF INCOME TAX Vs. SWAMIJI MILLS LIMITED

JUDGEMENT

(1.) AT the instance of the Department, the Tribunal referred the following question for our opinion :

(2.) THE assessee is a manufacturer of cotton yarn. In the books of account relevant for the assessment year 1975-76, it had credited the sales tax account with a sum of Rs. 2,25,416 and debited the same with an amount of Rs. 1,18,298 being the amount remitted to the Sales Tax Department during the year. THE Income-tax Officer added the difference of Rs. 1, 07,118 on the finding that the assessee had maintained its accounts on cash basis of accounting in respect of sales tax matters. On appeal, the Appellate Assistant Commissioner confirmed the order passed by the Income-tax Officer. Aggrieved with that order, the assessee filed a second appeal before the Tribunal. THE Tribunal deleted the addition made by the Income-tax Officer.