( 1 ) AT the instance of the Revenue, the Income Tax Appellate Tribunal, Allahabad has referred the following question under section 256 (1) of the Income-tax Act (hereinafter referred to as "the Act") relating to the assessment year 1982-83 for opinion to this Court: "whether in law and in circumstances of the case, the Honble Income-tax Appellate tribunal was justified in allowing assessees claim of Rs. 2,76,419/- representing Case price difference, holding that the liability accrued and arose during the accounting period relevant to the assessment year under consideration as a result of final agreement dated 20. 9. 1981?"

( 2 ) THE brief facts of the case are as follows.

( 3 ) THE assessee-opposite party (hereinafter referred to as the "assessee") deals in sales of motorcars and their spare parts as a dealer of M/s Premier Automobiles Ltd. During the course of assessment proceedings for the assessment year 1982-83, it was noticed that the assessee had debited a sum of Rs. 2,76,419/- in profit and loss account under the head car price Difference paid to M/s Premier Automobiles Ltd. and accordingly claimed it as deduction during the year under consideration from its