2013 (10) TMI 1292

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..... p;           "The learned Commissioner of Income-tax (Appeals) has erred on facts and in law by deleting disallowance of Rs. 92,81,500 being amount paid towards house tax ignoring the fact that the house tax demand had been disputed by the assessee with the NDMC and had been paid under protest." 3. At the time of hearing before us, it was stated by the learned Departmental representative that during the course of appellate proceedings, the assessee has stated that out of the total demand raised by NDMC at Rs. 92,81,500, the disputed demand is only Rs. 69,748. The learned Commissioner of Income-tax (Appeals) accepted the assessee's version and sustained the addition to the extent of Rs. .....

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..... lity of sales tax and, therefore, the same was disallowed by the Assessing Officer on the ground that (i) the assessee had contested the liability of sales tax in appeals, and (ii) no provision has been made by the assessee in the books of account. The order of the Assessing Officer was upheld till the High Court. On appeal, the hon'ble apex court allowed the assessee's appeal holding as under (headnote) :                  "That the moment a dealer made either purchases or sales which were subject to sales tax, the obligation to pay the tax arose. Although that liability could not be enforced till quantification was effected by assessment proceedings, t .....

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..... he demand. Though at the time of hearing before us it is stated by learned counsel that in the forwarding letter only the assessee has mentioned that the demand raised is contrary to law and the assessee is making payment under protest, however, thereafter, the assessee has not challenged the above demand before any court of law. However, in view of the above decision of the hon'ble apex court, it is evident that even if the assessee has disputed the liability, it will be no bar in allowing the deduction for the same unless and until the assessee got relief in this regard. It is not in dispute that there was no reduction in liability of property tax during the accounting year relevant to the assessment year under consideration. We, ther .....

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