https://www.taxtmi.com/caselaws?id=61779 A provision for purchase tax could not be disallowed in revision under section 263 of the Income-tax Act merely on the assumption that no liability existed. The assessee's purchase tax exposure under the Kerala General Sales-tax Act and possible exemption under section 5(3) of the Central Sales-tax Act depended on unresolved factual and statutory conditions, including whether the purchases were linked to existing export contracts and the final outcome of sales tax proceedings. Because the competent tax authority had not finally determined the liability, it could not be treated as nonexistent. The revision order was therefore unjustified and the original assessment was restored. en-us Fri, 29 May 1987 00:00:00 +0530 Fri, 14 Jan 2011 18:27:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=61779 A provision for purchase tax could not be disallowed in revision under section 263 of the Income-tax Act merely on the assumption that no liability existed. The assessee's purchase tax exposure under the Kerala General Sales-tax Act and possible exemption under section 5(3) of the Central Sales-tax Act depended on unresolved factual and statutory conditions, including whether the purchases were linked to existing export contracts and the final outcome of sales tax proceedings. Because the competent tax authority had not finally determined the liability, it could not be treated as nonexistent. The revision order was therefore unjustified and the original assessment was restored. Case-Laws Income Tax Fri, 29 May 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=61779