9911796707
TMI Blog1977 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... was thus an excess realisations of Rs. 19,455 on account of sales-tax. He, therefore, required the assessee to show cause why this amount should not be assessed as its income of this year. The assessee claimed that the entire amount realised by its as sales-tax was payable by it to the Government and relying on the decision in the case of Kedar Nath Jute Mfg. Co. 82 ITR 363 the assessee claimed that there was no justification for making any addition. The ITO held that the decision relied upon by the assessee was not applicable as according to him the assessee had kept Sales tax accounts of cash basis. He therefore, held that the case of the assessee would be covered by the decision in the case of Chowringhee Sales Bureau (P) Ltd. 1973 CTR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid on 31st March, 1976. The entire amount collected by the assessee had thus been paid to the Government. The U.P. Sales-tax account started with an opening credit balance of Rs. 453. The realisations during the year amounted to Rs. 4,807, making a total of Rs. 5,260. The payments during the year amounted to Rs. 4,128 leaving a balance of Rs. 1,132. This amount represented the tax for the last quarter ending on 31st March, 1973 and was paid to the Government on 30th April., 1973. Shri Garg, therefore, claimed that the entire amount collected by the assessee as sales tax during the year was payable by it to the Government and had actually been so paid. The assessee was maintaining books on mercantile basis and in no earlier year had any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the sales-tax collections had been credited in the sales-tax accounts as and when sales-tax was collected and the payments were debited as and when made. We do not see how this fact would be the basis for holding that the assessee was claiming sales-tax liability on cash basis. The finding of the ITO is contradicted by the fact that the amounts brought by the assessee as credit balance in the sales-tax amount this year were not assessed as assessee's income in the preceding year. There is absolutely no other evidence to show that the assessee was claiming sales-tax liability on cash basis. The facts pointed out by the assessee also show that the entire amount collected by it as sales tax was paid to the Government. The sales- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 6,389. 7. The assessee claimed that there was no justification for making any disallowance. In support of this contention, Shri Garg-pointed out that the order of the AAC for the earlier year which had been made the basis for making this disallowance in this year had since been reversed by the Tribunal and the entire amount paid as commission was allowed as a deduction. Shri Garg, therefore, claimed that the disallowance sustained by the AAC should be deleted. Shri Shukla on behalf of the Department supported the order of the AAC. 8. We find that the AAC had sustained the disallowance of Rs. 6,389 on the basis of his order in the case of the assessee for asst. yr. 1972-73. That order of the AAC has since been reversed by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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