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2005 (10) TMI 55 - ALLAHABAD HIGH COURTContingency account – investment t allowance - Held that the amounts collected by the assessee from the hire purchaser as sales tax were not really sales tax at all because the sale at that time had not taken place and the sales tax is payable when the sale takes place and in the case of hire purchase, the sale takes place only at the time mentioned in the hire purchase agreement or at the option of the hirer, if so provided in the agreement. Hence, there was no sales tax liability on the assessee at all when he collected the amounts from the hire purchaser and, therefore, the amounts in contingency account No. II had to be treated as income of the assessee in the assessment year in which it made the collection. – further, as the sale under the hire-purchase agreement takes place only at the time mentioned in the agreement or at the option of the hirer, if so provided in the agreement, the dealer's margin or profit under the hire purchase agreement did not accrue to the assessee on the execution of the agreement by the hirer, therefore, Tribunal was correct in holding that the entire dealer's margin or profit under the hire purchase agreement did not accrue to the assessee on the execution of the agreement by the hirer – further, held that computer does 'manufacture or produce' within the meaning of section 32A of the Act and hence is entitled for investment allowance
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