9911796707
TMI Blog1985 (8) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... Jaipur, be directed to refer the following question of law arising out of its order dated August 31, 1978, to this court for its opinion : "Whether, in the facts and circumstances of the case, the Tribunal was right in holding that double relief in respect of the amount collected by way of sales tax was not granted to the assessee and the Revenue has not been able to satisfy that any direction has been given involving excessive relief to the assessee ?" The facts which have given rise to these applications may be briefly stated. M/s. Assam Roller Flour Mills, Jaipur (hereinafter referred to as "the assessee"), is a registered firm dealing in wheat flour, suji and maida. The Income-tax Officer, while dealing with the assessment matters o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts collected by the assessee were merely in the nature of security deposits. The Department filed an application for rectification before the Appellate Tribunal and urged that as credit on account of sales tax deposits was accepted by the Tribunal and no addition could be made on account of such credits in the tax liability of the assessee for the assessment years 1973-74 and 1974-75, the assessee should not have been made further entitled to deductions on account of sales tax liability for both the assessment years. The application for rectification was dismissed by the Appellate Tribunal by its order dated August 31, 1978. It was observed that the Tribunal had taken the view in the appeals arising out of assessment orders that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal having held that the said amounts did not represent the revenue receipts of the assessee during the two assessment years referred to above, directed the deduction of the said amounts from the total income of the assessee, which have the effect of nullifying the additions which had been made by the Income-tax Officer. The Appellate Tribunal appears to be justified in holding that there was no question of granting any double relief. Moreover, in case the Income-tax Officer subsequently finds that the sales tax has not been paid and was not payable and the amount has not been refunded by the assessee to the customers, then under section 41 of the Income-tax. Act, it would be open to him to make the addition of the said amounts in the recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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