9911796707
TMI Blog1998 (8) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue are : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the sales tax penalty imposed under the Tamil Nadu General Sales Tax Act is deductible as a liability under rule 1D when the company T. I. and M. Sales Ltd., has not shown it as a liability in the balance-sheet drawn up ? and (2) Whether the Tribunal was correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notes to the balance-sheet, although that amount had not been taken into account either in the profit and loss account or in the body of the balance-sheet. The Tribunal upheld the assessee's claim. The Tribunal also declined to apply the ratio of the judgment of the Supreme Court in CWT v. K.S.N. Bhatt [1984] 145 ITR 1. Counsel for the assessee sought to sustain the order of the Tribunal. He co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an assessment on the ground that the assessee had received a higher compensation for the lands acquired received subsequent to the valuation date did not warrant reopening of the assessment. These submissions on behalf of the assessee cannot save the assessee from the ratio laid down by the Supreme Court in CWT v. K. S. N. Bhatt [1984] 145 ITR 1, which was directly in point, whereunder the Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment under the Wealth-tax Act would not have the effect of allowing the assessee to treat it as a liability, even when such liability had ceased to exist and such cessation was from the inception. As observed by the Supreme Court in CWT v. K. S. N. Bhatt [1984] 145 ITR 1, once it is determined that the tax liability is "nil", it cannot be said that any amount of tax is outstanding. When it was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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