Tribunal Upholds CIT(A)'s Decision, Deletes Rs.2.44 Crore Sales Tax Addition, Consistent with Prior Rulings.

The Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s decision to delete the addition of Rs.2,44,70,672/- related to the deferment of sales tax. The Tribunal relied on its previous decision in the appellant's own case for an earlier assessment year, maintaining consistency with past rulings.

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Issues involved: Appeal filed by Revenue challenging deletion of addition on account of deferment of sales tax.

Summary:
The appeal was filed by the Revenue against the order of the ld.CIT(A)-XI, Ahmedabad dated 15.06.2010. The main issue was the addition of Rs.2,44,70,672/- on account of deferment of sales tax. The assessee-company was involved in manufacturing and trading of various products including starch, tapioca, chemicals, maize grain, and allied products. The AO noted that the assessee had shown a sales tax liability of Rs.14,54,26,795/- under "sales tax deferment" and that Rs.2,44,70,672/- of this liability remained unpaid. The AO invoked section 43B of the Act to tax this amount. The ld.CIT(A) decided in favor of the appellant based on a previous Tribunal decision in the appellant's own case for an earlier assessment year. The Tribunal, following past decisions, dismissed the Revenue's appeal, upholding the deletion of the addition on account of sales tax deferment.

In conclusion, the Tribunal dismissed the appeal of the Revenue, affirming the decision to delete the addition related to the deferment of sales tax.

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