COMMISSIONER OF INCOME TAX Vs. KRISHNAN V

JUDGEMENT

(1.) THE Appellate Tribunal has referred the following question under Section 256(1) of the I.T. Act, 1961, at the instance of the CIT:

(2.) THE assessee, though served, was not present and Mr. J. Jayaraman, the learned counsel for the Commissioner, placed before us all the aspects of the question. THE facts relevant to the question are as follows:

(3.) THE learned counsel for the revenue submitted that the assessee was maintaining accounts on mercantile basis and that the liability to tax did not arise in this year. According to him, sales tax was liable to be deducted only in the year in which the transactions took place. As the transactions in the present case took place in the years 1966-67 and 1967-68, the assessee could not get a deduction of the sales tax liability in respect of those transactions which were under consideration. THE correctness of this contention requires to be examined.