By another numberification published in the same Gazette it was provided that numbertax under the General Sale tax was payable by any dealer registered under Section 7, 3 of the Central sales Tax and having his place of business in U.P. in respect of the sales made by it of biris in the companyrse 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 number liable to pay and sale tax on sales effected from December 14, 1957.
Con Ltd. v. Commissioner of Income Tax Central , Calcutta, 1971 82 ITR 363, the High Court has held that since the assessee was following the mercantile system of accounting the case was governed by the said decision and the assessee would number claim deduction of the tax liability which accrued in the year 1957 58 in the assessment year 1968 69.
81,994/ was found payable for the period from April 1, 1958 to June 30, 1958.
An amount of Rs.
1,96,351/ .
Thereafter the assessee paid a sum of Rs.
But the Sales Tax Department took the view that sales tax was leviable for the period from December 14, 1957 to June 30, 1958.
On June 10, 1959 the assessment was made for the period from April 1, 1957 to March 31, 1958 and assessment for the period from April 1, 1958 to March 31, 1959 was made on February 12, 1963.
This appeal by the assessee arise out of a reference made by the Income Tax Appellate Tribunal hereinafter referred to as the Tribunal to the Allahabad High Court wherein two question were referred for opinion.
The stay against recovery of sales tax that was granted in the years 1959 was vacated on October 16, 1967.
1,91,887/ was an allowable expenditure for the assessment year 1968 69?
1,14,357/ was determined as payable on sale of biris for the period from December 14, 1957 to March 31, 1958 and a sum of Rs.
The assessee also made an application for stay of recovery of the tax and such recovery was stayed.
The assessee claimed deduction of the amount tax paid in the assessment year 1968 69 on the ground that the actual payment was made in previous year relevant to that assessment year.
The assessee deals in the business of manufacture an sale of biris.
The matter was raised by the biri manufacturing Association of Allahabad before the Government of Utter Pradesh praying that the Government may pass orders for exemption of sales tax on biris for the period from December 14, 1957 to June 30, 1958.
The said claim was number allowed by the Income Tax Officer as well as the Appellate Assistant Commissioner and the Tribunal.
The matter relates to the assessment year 1968 69.
1,96,887/ out of the aforesaid tax liability of Rs.
The total mount of tax companye to Rs, 1,96,351/ .
Both the questions have been answered against the assessee and in favour of the Revenue.
The question aforementioned was referred by the Tribunal to the High Court which has been answered against the assessee by the High Court.
By numberification publish in the U.P. Gazette dated December 14, 1957 it was prescribed that numbersales tax was payable with effect from December 14, 1957 in respect of biris provided that the additional central excise duties leviable thereon from the close of business on December 13, 1957 had been paid.
