2015 (9) TMI 864

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....n reversal of the conclusions of the  Appellate Commissioner and the Income Tax  Appellate Tribunal. The assessment years in  question are 1982-83, 1984-85 and 1985-86  respectively. The issue before the High Court was  with regard to the entitlement of the appellant-assessee to the benefit of the deduction of the amount of liability to payment of sales tax  on the excise duty component of the goods purchased by the assessee from the  manufacturer-seller- M/S. Mc Dowell & Co. Ltd.    2. The facts noticed are those arising in the  appeal for the assessment year 1982-1983 though  the same would suffice for the other appeals also.  There is no dispute that in terms of the Agr....

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....by the buyer as part of turnover of the seller and demanding sales tax and other charges on the excise duty, the buyer hereby agreed with the seller to reimburse the sales tax and other charges payable by the seller to the Government of Andhra Pradesh on sufficient proof being furnished by the seller to the buyer in this regard".    4. The aforesaid view of the Appellate  Commissioner was affirmed by the Tribunal in an  appeal filed by the Revenue. Aggrieved, a  reference was sought and obtained by the Revenue  which having been answered in the manner indicated  above, the assessee is before us in the present  appeals. 5. The order of the High Court dated 5th  April, 2005 would go to show....

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....es Vs.  Commissioner of Income Tax, Karnataka were also  placed before us in support of the contention  advanced, namely, that in the absence of a  specific question framed, it was not open for the  High Court to go into the issue of authenticity of  the Agreement dated 18.12.1981. Alternatively, it  has been submitted by Shri Parasaran that even  dehors the agreement, sales tax on excise duty  being a part of the sale price, the liability of  such tax has to be borne by the assessee.  Therefore, the view taken by the High Court would  justify interference.     7. Mr. Rupesh Kumar, learned counsel  appearing on behalf of the Revenue has strenuously  urged ....

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.... had  exceeded its jurisdiction in recording a finding  with regard to the authenticity of the Agreement  dated 18.12.1991. If the Agreement dated  18.12.1991 is to be treated as a part of the  record of the assessment proceedings, undoubtedly,  a liability had been cast upon the assessee  insofar as the sales tax payable on the excise  duty component is concerned. It is not in dispute  that the mercantile system of accounting was in  vogue in the assessee company. In the revised  return filed by the assessee deduction of the  amounts claimed by M/S. Mc Dowell & Co. Ltd. on  sales tax was reflected. That the original return  filed by the assessee did not reflect the ....