1993 (6) TMI 28

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....ce of the assessee, the Income-tax Appellate Tribunal has referred the following question to this court under section 256(1) of the Income-tax Act, 1961 : "Whether the assessee was entitled to development rebate of Rs. 15,103 in the assessment year 1972-73 ?" During the accounting period relevant to the assessment year 1971-72, the assessee purchased machinery for which Rs. 15,103 became pay....

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....1-72. In the appeal filed by the assessee, the Appellate Assistant Commissioner held that the appellant was entitled to the development rebate for the assessment year 1972-73 and, therefore, directed the Income-tax Officer to allow the development rebate in that assessment year after verifying that necessary conditions regarding creation of development rebate reserves, etc., were satisfied. ....

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....ility to pay sales tax arose as soon as the transaction of sale or purchase was complete. Merely because the seller of the machinery and the assessee were in doubt as to whether the assessee would be entitled to the exemption under one or other of the exemption notifications issued by the Government, it cannot be said that the liability to pay sales tax had not arisen. Therefore, even though the a....