Meaning of taxable event :‘
Taxable event’ is that on happening of which the charge is fixed. It is that event, which on its occurrence creates or attracts the liability to tax. Such liability does not accrue at any earlier or later point of time. Even though taxable event happens to be at a particular point of time, the levy and collection of such tax may be postponed for administrative convenience, to a later date – Goody ear India Ltd. v. State of Hary ana (1990) 76 STC 71 (SC) = 188 ITR 402 = 1990 UPTC 198 = AIR 1990 SC 781 – – quoted with approval in State of Kerala v. A lex George 2004 AIR SCW 6552 (SC 3 member bench).
Tax becomes payable when liability to pay tax arises and liability to pay tax arises by the happening of the taxable event – KalwaDevadallain v. UOI (1963) 49 ITR 165 (SC) * M A Co. v. Asstt Commissioner (1964) 15 STC 487 (All HC).
Tax can be imposed only on ‘taxable event’. However, all taxable events are not covered in legislative entries in Seventh Schedule to Constitution -Godf rey Philip s India v. State of UP AIR 2005 SC 1103 = 139 STC 537 (SC 5 member Constitution Bench).