IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1121 OF 2000 M/s.Western India Oil Distributing) Co. Ltd., Mumbai )..Appellants V/s. Asst. Commissioner of Income-tax ) Circle-2(4) Mumbai & Ors. )..Respondents ---- Ms.Aasifa Khan for the appellant. Mr.Suresh Kumar for the respondents. ---- Coram : F.I.Rebello & R.S.Mohite,JJ Date : 28.01.2009. PC 1. Appeal was admitted on the following questions of law :- (1) "Whether on the facts and in law, the Appellate Tribunal is correct in holding that the assessment order passed under Section 143(3) is erroneous and prejudicial to the interest of the revenue ? (2) " Whether on the facts and circumstances of the case and in law, the Appellate Tribunal was justified in holding that the unpaid amount of rent of Rs.6,20,728/- is not an ascertainable liability, therefore, the same is not an allowable deduction for the assessment year 1987-88, notwithstanding the fact that the assessee is regularly employing the mercantile or accrual method of accounting ? 2. In so far as question no.1 is concerned, the same is not pressed. 2. In so far as question-(1) is concerned, the same is not pressed. : 2 : 3. In so far as question no.(2) is concerned, the sum of Rs.6,20,728/- consists of two parts being sum of Rs.2,82,816 being the unpaid amount of rental liability of BPT, Wadala and the sum of Rs.3,37,912/- being the rental liability of northern railway. In so far as the demand of northern railway, in the sum of Rs.3,37,912/- assesse, does not press the claim. 4. In so far as unclaimed amount of BPT, an additional affidavit has been filed pointing out that the issue of fixation of rent of BPT land was an issue before the Supreme Court and pursuant to the judgment of the Supreme Court the BPT has fixed the rent. As per the affidavit, the rent has not been paid. 5. In our opinion, it would be appropriate that this issue be answered by the Tribunal after giving both the parties an opportunity. In the light of the above the impugned order to that extent is set aside. The matter is remanded in so far as question no.2 to the extent of the sum of Rs.2,82,816/- to the Tribunal for deciding the same afresh in terms of the appeal filed before this Court. 6. Appeal disposed off accordingly. Needless to say the appellant would be entitled to allowance of the rent in terms of the Supreme Court directions. : 3 : (R.S.Mohite,J) (F.I.Rebello,J)