Bombay High Court
C.I.T.
Versus
M.G.S. @ W. CO. Ltd.
Decided On:

Headnote:Sections 28 and 29-Business expenditure-assessment year 1981-82-Amount claimed as deduction on account of excise duty liability on basis of mere show cause notices cannot constitute expenditure for the purpose of income-tax. - where no liability ever accrued against the assessee because the show cause notices themselves were quashed, there was no liability in praesenti existing against the assessee in the year of account. The amount claimed as deduction on account of excise duty liability on the basis of the show cause notices cannot constitute expenditure for the purpose of income tax. (1971) 82 IIR 363-Distinguished; (1998) 229 ITR 336; (1998) 230 ITR 194-Referred.

       Section 256(1)-If the Tribunal proceeds on an erroneous assumption of law, the High Court can correct the same-It cannot be called upon to act on the erroneous assumption of law because doing so would neither be in the interest of law or of justice. (1993) 201 ITR 697-Relied.

       For Citation : 2000 (2) Mh LJ 705 (Bom) : (2000) 102 (2) Bom LR 350