2004 (8) TMI 11

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..... interest on it for earlier years was an allowable deduction under the Income-tax Act, 1961, specially when the said amount was offered for taxation in the assessment year 1979-80 on refund?" - We, therefore, answer the question of law referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue
Judge(s) : R. K. AGRAWAL., K. N. OJHA. JUDGMENT The Income-tax Appe .....

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..... count of penalty and interest imposed by the sales tax authorities for earlier years and, therefore, disallowed the same. In the appeal, the Commissioner of Income-tax (Appeals), Lucknow, held that neither the amount should be allowed as deduction, nor the amount which was refunded subsequently be brought to tax. In further appeal, the Tribunal has held that the respondent-assessee is entitled for .....

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..... les tax accrued and not during the year in which it has actually been paid. The submission is misconceived. It is not in dispute that the respondent-assessee has realized sales tax from its customers and whatever amount has been realized had been paid over to the sales tax authorities. The demand appears to be over and above the admitted amount of tax liability, which had been created pursuant to .....

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