1978 (9) TMI 86

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....d hand oil engines both on own account and on commission basis. This appeal relates to its assessment for the asst. yr. 1973-74, on the previous year ended on31st March, 1973. The appellant's claim was that a sum of Rs. 8,184 representing sales-tax paid in respect of the asst. yr. 1967-68 should be allowed as a deduction for this year. The ITO disallowed the claim on the ground that it did not rel....

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....ed to the earlier years and that the entries in respect thereof should have been made when the demand notice was first received by the appellant from the sales-tax authorities. In this view, he rejected the appellant's contention and dismissed the appeal. 3. Before us, Shri C.S. Aggarwal the ld. counsel for the appellant submitted that the appellant was denying its liability to sales tax in res....

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....70: "Alternatively, the assessee may claim a deduction in a subsequent year in which the tax is assessed and the demand is made, although the transactions may pertain to earlier years: or he may even postpone his claim to a deduction to the year in which he loses in appellate proceedings and the levy becomes final". 4. Miss. Sunita Ganda for the Revenue relied on the orders of the department....

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....IT (1) the assessee could have claimed this deduction on the mercantile system of accounting in its books of accounts in the previous year relevant for the asst. yr. 1968-69. But the assessee did not do so, as it was contesting its liability to such sales tax on several grounds before the sales-tax authorities. It did not make any provision for it when it received demand notice in Jan., 1971 from ....