9911796707
TMI Blog1997 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... the Allahabad High Court (see [1982] 134 ITR 718) wherein two questions were referred for opinion. Both the questions have been answered against the assessee and in favour of the Revenue. In the present appeal, we are only concerned with question No. 2 which is in the following terms : " Whether, on the facts and in the circumstances of the case, the payment of sales tax composition fee of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of inter-State trade and provided they were sales to a dealer who had moved business outside U. P. The assessee claimed that it was not liable to pay any sales tax on sales effected from December 14, 1957. But the Sales Tax Department took the view that sales tax was leviable for the period from December 14, 1957, to June 30, 1958. The matter was raised by the Biri Manufacturing Association of A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted in the year 1959 was vacated on October 16, 1967. Thereafter, the assessee paid a sum of Rs. 1,91,887 out of the aforesaid tax liability of Rs. 1,96,351. The assessee claimed deduction of the amount of tax paid in the assessment year 196869 on the ground that the actual payment was made in the previous year relevant to that assessment year. The said claim was not allowed by the Income-tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmitting deduction of tax in the assessment year 1968-69 and has placed reliance on the observations of this court in Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542, wherein, in the context of sales tax liability, this court has held that the amount received on account of sales tax on goods sold has to be treated as trading receipt in the year in which it was received and it has been ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accrue the moment the dealer made sales which are subject to sales tax and, at that stage, the obligation to pay the sales tax arises and the raising of the dispute in this connection before the higher authorities would be irrelevant. The present case is thus fully covered by the aforesaid decision of this court. We, therefore, do not find any merit in the appeal and the same is accordingly dism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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