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TMI Blog1991 (1) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... . Annexure-A assessment order dated September 13, 1984, for the year 1981-82, sent along With the statement of the case, shows that the accounting period ended on December 31, 1980. So, the previous year for the assessment year 1981-82 should be January 1, 1980 to December 31, 1980. The assessee pleaded that he is entitled to make a provision in the sum of Rs. 3,21,256 towards purchase tax liability for the year. It was allowed by the Income-tax Officer. In proceedings under section 263 of the Incometax Act (suo motu revision) by the Commissioner of Income-tax, it was noticed that a provisional sales tax assessment order was passed on June 26, 1979, by the Sales Tax Officer requiring the assessee to pay purchase tax. It is seen that this or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability to pay purchase tax existed during the relevant accounting year. The said liability to pay purchase tax was wiped out only by the final assessment order passed on August 10, 1983. But, the fact that the assessee was held liable to pay purchase tax as per the provisional order of assessment cannot be ignored and it cannot be said that no purchase tax was payable by the assessee for the purchases effected during the relevant accounting year, and so the direction given by the Commissioner of Income-tax to add back a sum of Rs. 3,21,256, the provision made towards purchase tax liability, in the income assessed, is a clear error. The Tribunal allowed the appeal filed by the assessee. It is thereafter at the instance of the Revenue that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Appellate Tribunal when it rendered its appellate order dated June 23, 1987 (annexure-C). All along the line, both parties have proceeded on the basis that the liability to pay purchase tax which resulted as a result of the order passed by the Sales Tax Officer dated June 26, 1979, and affirmed by the Appellate Assistant Commissioner (Sales Tax) by order dated November 6, 1979, related to the assessment year 1981-82. That will be so only if the accounting period for the said assessment year 1981-82 took within its fold the period between June and November, 1979. It is not so as could be seen from annexure-A assessment order dated September 13, 1984. Counsel for the assessee Mr. Balachandran has a case that the assessment order sent to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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