1997 (9) TMI 39

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....tax Act, 1961, the Income-tax Appellate Tribunal at the instance of the Revenue, has referred the following two questions for the opinion of this court : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that as and when the assessee effected the purchases of shoes from cobblers, the assessee's liability to pay the ta....

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....of that amount is paid by the assessee to the State Government or is refunded to a party, it would qualify for deduction in the computation of the total taxable income in the year. On appeal, the Appellate Assistant Commissioner of Income-tax upheld the action of the Income-tax Officer taking the view that the said amount consisted of sales tax charged by the assessee from its customers but was no....

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....id not alter the legal position. The decision of the Tribunal is in conformity with the view expressed by this court in CIT v. Poonam Chand Trilok Chand [1976] 105 ITR 618; CIT v. Brijmohan Das Laxman Das [1979] 117 ITR 121 (All). Learned counsel for the parties agree that the controversy in issue is now covered by a decision of the Supreme Court in Jonnalla Narashimharao and Co. v. CIT [199....