9911796707
TMI Blog1996 (5) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... s the final fact finding authority has held that there is no liability of tax on the sale of maida and suji in the case of the assessee. The claim was based on a later decision of the apex court in the case of Vishnu Agencies (Pvt.) Ltd. v. CTO [1978] 42 STC 31 and the Income-tax Officer was of supply of cement is not applicable for sale of maida and suji, etc. (sic). It was also found that in the return submitted the turnover was not disclosed as taxable in sales tax law. There was no order passed by the assessing authority under the sales tax law which has fixed the liability of the assessee. Taking into consideration the facts of 1975-76, the Tribunal has allowed deduction. Learned counsel for the Revenue has stated that in the year 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in fact till date been created or admitted or paid. On the application of the Revenue, the following question has been referred : " Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that sales tax liability incurred by the assessee on turnover was allowable ? " Learned counsel for the assessee has submitted that the firm, Assam Roller Flour Mills, Jaipur, succeeded to the business of Assam Rollers on February 1, 1982, and a sum of Rs. 49,660 for the period from September 8, 1976, to March 31, 1977, was deposited to wards sales tax. In the affidavit submitted it is stated that neither any sales tax has been charged nor collected nor any amount by way of sales tax or otherwise has been accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is as to whether the assessee is entitled to claim the deduction of sales tax which has neither been admitted nor was payable or paid. In this regard the provisions of section 37 of the Income-tax Act are relevant. Any expenditure (not being the expenditure of the nature described under sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purpose of business or profession is allowable as deduction. This matter was considered in respect of the assessment year 1975-76 in D. B. Income-tax Reference No. 122 of 1981 decided on October 28, 1993 (CIT v. Assam Roller and Flour Mills [1994] 209 ITR 835), wherein it was observed that in accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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