Ascertained liability allowable under the mercantile system of accounting (Principle of Consistency)

Last updated: 31 December 2013

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The assessee is a Company and is engaged in the business of manufacturing of white crystal sugar. It filed its return of income on 25.11.2006 declaring total income of Rs.1,01,251/-. The Ld.AO complete the assessment u/s 143(3) on 31.12.2008 determining the total income of the assessee at Rs.1,47,49,159/- and allowed set off of this amount from brought forward losses. Aggrieved at the additions made to the returned income the assessee filed an appeal before the Ld.Commissioner of Income Tax (Appeals)- XVI, New Delhi. The First Appellate Authority granted part relief. Aggrieved with the relief given by the First Appellate Authority the Revenue has filed this appeal on the following grounds.

Citation :
ACIT, Circle 10(1) New Delhi (Appellant) Vs. Dewan Sugar Ltd. Surya Plaza, 1st floor K 185, Sarai Jullena, New Friends Colony New Delhi PAN: AAACD 3465 H (Respondent)