9911796707
TMI Blog1987 (9) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax officer disallowed only Rs. 2,88,436 out of this purchase tax and the rest of the provision was allowed. 2. Subsequently it happened that the Sales Tax Department of Tamil Nadu held that the purchases would be subject to exemption u/s 5(3) of the Central Sales Tax Act read with section 9 of the Tamil Nadu Government.Sales Tax Act. The only purchases worth Rs. 79,400 was held to be taxable and the tax thereon amounted to Rs. 3,790. Therefore, there was an excess of Rs. 3,42,754 allowed in the original assessment order. 3. The assessments were reopened in order to disallow this excess provision allowed earlier. We are not concerned with the validity of the reopening of the assessment. The only issue before us is whether the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmined at Rs. 3,970 only. 6. Basing on these facts, it was urged before the ITO that on the date of which the accounts were closed there was a liability. Not only there was a liability there was also actual payment. The ITO, however, did not accept the submissions. He held that there was no liability to pay and the provision to the extent of Rs. 3,42,754 was not towards any existing liability and, therefore, not allowable. 7. The Commissioner (Appeals), however, accepted the assessee's contention. He relied mainly on the decision of the Madhya Pradesh High Court in the case of Addl. CIT v. Chandrakant D. Patel (1983) 139 ITR 233. 8. The department is in further appeal before us. We have heard Shri Karthikeyan for the department and Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments to show that the purchases were effected in the course of the export business. To quote from this order : "The assessee has failed to conclusively prove with documentary evidence that the graded prawns exported to the foreign buyers are the products of the last purchases of prawns effected within Tamil Nadu between the period from the date of contract to the date of export and was thus covered by a prior contract for purchase by the foreign buyer." The appellate authority, however, found that there was evidence and the matter was sent back only to inspect these documentary evidences. Thus it will be noticed that the decision of the Commercial Tax Department was only on matter of evidence and not on matter on of principles. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment had been allowed in the income-tax assessment. So, the question was the year in which the refund available to the assessee would be assessed. The Madhya Pradesh High Court held that it could be brought to tax only on the year when the Supreme Court decision in deciding the issue before us. 11. At the time of hearing it was submitted that the refund was received from the Tamil Nadu Commercial Tax Department in the assessment year 1980-81 and it has already been offered to tax. It was submitted that if the assessee's contentions were not accepted in this case it would lead to double assessment. We agree that if the assessment for the year in which the fine was taxed is not revised it will lead to double assessment. Since the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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