SABYASACHI MUKHERJI, J.

( 1 ) THE method of accounting followed by the assessee and accepted by the department is mercantile. For the assessment year 1961-62, the assessee had made provision in its account for the sum of Rs. 22,642 on account of the sales tax payable by the assessee. The assessee claimed deduction of the said sum in its income-tax assessment. The Income-tax Officer disallowed the claim on the ground that the amount represented a mere provision for taxes which had neither been paid nor ascertained by the sales tax authorities. The assessee preferred an appeal before the Appellate Assistant Commissioner who confirmed the order of the Income-tax Officer. Thereupon, the assessee went up in appeal before the Income-tax Appellate Tribunal. The Tribunal found that, having regard to the scheme of the Sales Tax Act, the charge is created not upon the assessment but as soon as the sales are effected. In that view of the matter and inasmuch as there was no dispute that the amount of Rs. 22,642 represented the estimated amount of sales tax payable on the sales effected by the assessee during the year, the Tribunal was of the view that the amount represented an accrued liabili

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