Supreme Court · 1971 INSC 203 · Decided 17 August 1971
Kedarnath Jute MFG. CO. LTD. v. Commissioner of Income Tax, Central Calcutta
- Court
- Supreme Court of India
- Citation
- 1971 INSC 203 · [1972] 1 S.C.R. 277
- Case number
- CIVIL APPEAL No. 1899/1967
- Decided
- 17 August 1971
- Bench
- K.S. HEGDE, A.N. GROVER (2-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act Section 10(1), 10(2)(xv)
Headnote
Income-tax Act, 1922, ss. 10(1) and 10(2)(xv)-Disputed and unpaid sales tax whether a permissible deduction-Liability accrues in year of" sale and not when sales tax demand is quantified or finally determined-"­ Where mercantile system ~f accouming is adopted amount is deductible is discharged is irrelevant-Position is not changed even when entries in books of account are made at a later date. The appellant was a public limited company doing the business of jute and manufacturing of jute goods. It followed the mercantile system of accounting. Before the Income-tax
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