1987 (3) TMI 504

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er also seeks the quashing of the order of the third respondent in Assessment No. 2068/82-83, dated 31st December, 1986. 2.. We have heard the learned counsel for the petitioner, Sri J. Eswara Prasad, and the learned Government Pleader. 3.. For the purpose of disposing of this writ petition it is not necessary to set down the disputes between the hoteliers and the Sales Tax Department with respect to the payment of sales tax on what have come to be popularly called "parcel restaurant sales". The Commercial Tax Department claimed that sales tax was liable to be paid on all such sales effected in the hotels while the hoteliers claimed that no sales tax was payable. The disputes were the subject-matter of consideration by the Supreme Cou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....overnment, were published in the Gazette dated 23rd August, 1986. The petitioner herein, being a hotelier with an annual turnover of more than Rs. 2 lakhs, is governed by the second notification. 5.. Pursuant to the aforesaid notification, the petitioner filed an affidavit dated 3rd January, 1987 stating that it had not collected any tax on its sales during the period 1st April, 1982 to 2nd February, 1983 which corresponds to the assessment year 1982-83. The affidavit did not, however, include testification to the effect that no claim for deduction of sales tax liability was made in its income-tax assessments by making a provision either at the assessment stage or by making claims at the appellate stage. As the affidavit did not contain ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Court in the above regard in I.T.C. No. 9 of 1984, dated 15th June, 1984 in the petitioner's own case. Learned counsel for the petitioner stated that in view of the uncertainty prevailing at the relevant time the petitioner had no alternative but to make a provision and claim the liability as a deduction for income-tax purposes. It is pointed out that the Government had decided to grant exemption only after the Supreme Court's observations dated 25th February, 1986 and the petitioner could not, therefore, be expected to file an affidavit on the lines specified in Notification No. 11 appended to the G.O. dated 22nd August, 1986. It is further submitted that the petitioner is willing to offer for assessment the sum allowed as deduction in its....