TMI Blog2002 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act are applicable therein?" - the liability to pay interest is an allowable deduction. The object of section 43B is to curb the activities of those taxpayers who do not discharge their statutory liability of payment of sales tax or excise duty for long periods but claim deduction in that regard from the income on the ground that the liability to pay this amount had been incurred by them in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B of the Act are applicable therein?" The brief facts of the case are that the assessee, Mewar Motors, Udaipur, is a partnership firm engaged in purchase and sale of scooters, motor-cycles, cars and accessories. The assessee filed the return showing total income of Rs. 1,96,045. The assessment was completed at the returned income. A notice under section 148 was issued on March 26, 1991, in respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of unpaid interest as part of the sales tax and disallowed the same under section 43B of the Income-tax Act. The Commissioner of Income-tax (Appeals) arrived at the conclusion that the order under section 143(3) read with section 148 was erroneous and pre judicial to the interests of the Revenue on account of the following mistakes: (1) The Assessing Officer failed to disallow under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer allowing the claim of the assessee is erroneous and prejudicial to the interests of the Revenue. The Tribunal accordingly rejected the claim of the assessee to that extent. None has appeared for the assessee in spite of service. We have heard Mr. Bhandawat, learned counsel for the Revenue. The question referred stands answered by the decision of this court in CIT v. Udaipur Distillery [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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