Assessee paid municipal tax for which cheques were issued to local authority prior to end of previous year relevant to assessment year, however, bank statements showed realization only on commencement of next assessment year, deduction in respect of such municipal tax was to be allowed during previous year.\u00a0 When a cheque is not dishonoured but encashed, payment relates back to date of tendering of cheque and date of payment would be date of delivery of cheque.\u00a0\u00a0 Followed CIT v. Ogale Glass Works Ltd\u00a0 (1954) 25 ITR 529 (SC) (Arising\u00a0 from\u00a0 Punalur Paper Mills Ltd. v ITO\u00a0 (2009) 29 SOT 449 (Cochin) (Trib.)\u00a0 (ITA Nos. 1378 to 1423 of 2019 dt. 7-02-2019) \u00a0(AY.1996-97 to 2002-03, 2004-05)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure\u2013Cheque issued\u2013Realised in next assessment year\u2013Cheque is not dishonoured but encashed, payment relates back to date of tendering of cheque and date of payment would be date of delivery of cheque-Allowable as deduction during previous year. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9890","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2zw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=9890"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9890\/revisions"}],"predecessor-version":[{"id":9891,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9890\/revisions\/9891"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}