9911796707
TMI Blog2001 (1) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 256(1) of the Income-tax Act, 1961 (in short the "Act"), by the Income-tax Appellate Tribunal, Delhi Bench "C", New Delhi (in short the "Tribunal") : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the sum of Rs. 71,390 is allowable as sales tax liability in computing the assessee's income for the assessment year 1977-78?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 28, 1975, passed by the Sales Tax Officer was also filed. The said demand was disputed by the assessee before the Additional Commissioner of Sales Tax. The appeal was dismissed on June 30, 1976. The assessee filed further appeal before the Sales Tax Tribunal on July 27, 1976. A writ petition was also filed before the Supreme Court, which set aside the sales tax assessment order by judgment date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer had been set aside by the Supreme Court. In further appeal before the Tribunal the assessee contended that it could claim deduction in the assessment year 1977-78 on the basis of the assessment order dated November 28, 1975. The Tribunal held that the assessee was entitled to claim deduction even if such liability had not been quantified or paid or even when such liability was being dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the Revenue, if on the Sales Tax Officer passing an order, complying with the directions of the Supreme Court, any liability is created, the same has to be allowed as a liability in the year in which it is crystallised. Our answer to the question, therefore, is in the negative, in favour of the Revenue and against the assessee. Reference accordingly stands disposed of. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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