1996 (3) TMI 37

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..... , on the facts and in the circumstances of the case, the assessee is entitled to the claim for purchase tax liability ? 2. Whether, on the facts and in the circumstances of the case, and since the assessee had not established that there is a legal liability for purchase tax and also in view of the fact that the assessee had claimed before the sales tax authorities total exemption of purchase tax .....

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..... s of the Revenue. It is observed in the context that the assessee is not subject to purchase tax since the articles were purchased for export. It was further observed that since this aspect that the purchases were made for export was not considered by the Income-tax Officer, this was found to be erroneous. It was this question that was taken up by the assessee before the Tribunal. The Tribunal .....

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..... llowed as business expenditure. This court has drawn strength in regard to this proposition from the decision of the Supreme Court in Kedarnath Jute Manufacturing Co. Ltd. v. CIT [1971] 82 ITR 363, dealing with the factual situation that the amount was paid only later on the basis that the moment a dealer made purchases or sales which were subject to sales tax, the obligation to pay the tax arose. .....

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