1993 (2) TMI 52

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....come-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in rejecting the contention of the appellant that the assessee-company does not manufacture textile machinery or accessories and, therefore, is not qualified for deduction or relief under section 80-I ? 3. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that Rs. 3,596 being education cess for the earlier years is not deductible ?" The assessee manufactures humidifiers which are used in textile mills. During the assessment proceedings pertaining to the assessment year 1972-73, the assessee claimed a deduction under section 80-1 in respect of humidifiers manufactured by it on the gro....

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....the assessee itself, has held that humidifiers manufactured by it are either textile machinery or textile accessories. For the reasons recorded in the said judgment, we hold that the assessee was entitled to the benefit of section 80-I in respect of the humidifiers manufactured by it. The Tribunal has rejected the claim of the assessee for deduction of Rs. 3,596 being the amount of education cess payable for the financial years 1966-67 to 1970-71 on the ground that the assessee had not placed necessary facts for consideration of the authorities, and that it was not possible to know what was decided by the Gujarat High Court and the Supreme Court and what was the agreement between the assessee and the Municipal Corporation. Thus, it was n....

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....provision for the liability in his books. Alternatively, the assessee may claim a deduction in a subsequent year in which the tax is assessed and the demand is made, although the transactions may pertain to earlier years, or he may even postpone his claim to deduction to the year in which he loses in appellate proceedings and the levy becomes final. It is not in dispute that the assessee did receive a bill for payment of education cess.. The amount payable is also now not in dispute. It is also not in dispute that education cess is payable by the assessee. The dispute between the Ahmedabad Municipal Corporation and the industrial units having been resolved by an agreement and the industrial units having accepted the liability to pay educati....