1997 (2) TMI 9

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....er referred to as "the Tribunal") to the Allahabad High Court (see [1982] 134 ITR 718) wherein two questions were referred for opinion. Both the questions have been answered against the assessee and in favour of the Revenue. In the present appeal, we are only concerned with question No. 2 which is in the following terms : " Whether, on the facts and in the circumstances of the case, the payment....

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....e sales made by it of biris in the course of inter-State trade and provided they were sales to a dealer who had moved business outside U. P. The assessee claimed that it was not liable to pay any sales tax on sales effected from December 14, 1957. But the Sales Tax Department took the view that sales tax was leviable for the period from December 14, 1957, to June 30, 1958. The matter was raised by....

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....ainst recovery of sales tax that was granted in the year 1959 was vacated on October 16, 1967. Thereafter, the assessee paid a sum of Rs. 1,91,887 out of the aforesaid tax liability of Rs. 1,96,351. The assessee claimed deduction of the amount of tax paid in the assessment year 196869 on the ground that the actual payment was made in the previous year relevant to that assessment year. The said cla....

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....68-69, the High Court was in error in not permitting deduction of tax in the assessment year 1968-69 and has placed reliance on the observations of this court in Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542, wherein, in the context of sales tax liability, this court has held that the amount received on account of sales tax on goods sold has to be treated as trading receipt in the year....