TMI Blog2011 (7) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal by reference to provisions of the relevant municipal law to indicate as to whether a mere proposal for enhancement of property tax would result in crystallization of liability qua that portion of rateable value which was sought to be enhanced - There can be no dispute that liability does not cease to exist merely because the quantification of the liability is deferred - From the facts ascertainable from the records, it appears there is a dispute with regard to the quantification as reflected in the proposal for enhancement - Evidently at the stage, at which the proceedings were pivoted in the assessment year in issue, there was no demand raised by the municipal corporation - Decided against of assessee. Expenses incurred on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue expenditure expenses incurred on tours for the purpose of project and for expansion of existing business? QUESTION NO. (i) 2. The brief facts pertaining to the aforementioned question are that the assessee had been collecting excise duty on the goods sold by it out of the State of Utter Pradesh (U.P.). Till the assessment year 1975 the assessee had been paying the excise duty collected from its customers to the concerned authorities. It appears that a challenge was laid by the assessee to the levy of the excise duty, in and around 1975-76, by institution of a writ petition before the Allahabad High Court. The Allahabad High Court, as an interim measure, had granted a stay; as a consequence of which the assessee continued to cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be made vis-a-vis the assessee. 2.5 The Tribunal sustained the view taken by the CIT(A). The Tribunal noted that the receipt was neutralized by accrual of liability of an equivalent amount against the assessee. 2.6 During the course of arguments Mr S.K. Aggarwal, who appears for the assessee accepted the fact that the amount received from the customers towards excise duty was a trading receipt. If this position is accepted then the fact that the matter was pending before the Supreme Court and a stay was operating against the decision of the Allahabad High Court attained significance. As indicated above, both counsels were unable to inform us as regards the outcome of the proceedings in the Supreme Court. In these circumstances, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , a sum of Rs.7,73,636/- 3.3 The assessee being aggrieved preferred an appeal to the CIT(A). The CIT(A) deleted the addition by placing reliance on the Tribunal‟s decision in favour of the assessee for assessment year 1978-79. 3.4 The Tribunal in a further appeal by the revenue sustained the view taken by the CIT(A). The Tribunal observed that the municipal corporation had proposed an enhancement in the rateable value qua property of the assessee; the dispute with regard to which was pending before the Appellate Authority and hence, being in the nature of a statutory liability the CIT(A) had allowed the same. On a reading of the CIT(A) order we find that there is no such observation. The CIT(A) had simply followed the earlier v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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