2007 (10) TMI 255

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.... date of amendment in the sales tax law of the State of Himachal Pradesh and not in the previous year relevant to the assessment year 1983-84, irrespective of the fact that the hon'ble Supreme Court had passed a stay order in favour of the assessee on June 18, 1980, and had vacated the stay on November 18, 1982 ?" 2. The brief facts necessary for adjudicating the present matter are that the petitioner was working as a forest contractor. He entered into an agreement with the District Forest Officer, Kotgarh, on July 3, 1979. He was liable to pay the sales tax which, at the relevant time, was 10 per cent. The rate of sales tax was enhanced by a retrospective amendment to the H. P. General Sales Tax Act with effect from February 1, 1979. The ....

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....86] 161 ITR 524. In that case, certain land belonging to the assessee had been acquired by the State. The Land Acquisition Officer awarded certain compensation. The assessee filed an appeal and the arbitrator enhanced the compensation. Thereafter, the State Government filed an appeal in the High Court. The enhanced amount was deposited in the court and the respondent was permitted to withdraw that amount on furnishing a security bond for refunding the amount in the event of it being allowed. On receiving the amount the assessee credited it in its suspense account. The question was whether this enhanced amount could be taxed as the income of the respondent for the assessment year in which the arbitrator had made the award or for the year in ....

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....es tax will accrue on the date when the company becomes liable to pay the tax regardless of the fact whether the tax has been actually paid or has been quantified or not. In the present case, the factual situation is somewhat different. At the time when the assessee entered into an agreement his liability to pay tax was only at the rate of 10 per cent. He is not disputing that the tax at the rate of 10 per cent. has to be deducted as an expense in the relevant assessment year. However, by way of amendment, that too with retrospective effect, the rate of sales tax was enhanced. The assessee challenged this amendment and finally this matter was decided on November 18, 1982. The assessee was found liable to pay the tax only on this date. There....