2003 (7) TMI 16 - HC - Income Tax

Whether the amount of kist payable by the; assessee to the State Government can be allowed as a deduction even when this sum has not been actually paid by the assessee in view of the restriction imposed under section 43B? - question raised in this appeal is covered by the earlier decision of this court in the case of CIT v. Sri Balaji and Co. against the appellants. In the said decision the Division Bench of this court has taken the view that it is only the statutory liability which is in the nature of tax duty cess or fee to which the provisions of section 43B of the Act are attracted. In the said decision it is held that the provisions of section 43B of the Act cannot be attracted in respect of the kist/rental amount payable to the Government by the assessee. Thus we are of the view that there is no merit in this appeal and the same is liable to be rejected as one devoid of any merit. Accordingly it is rejected.

Summary

The High Court of Karnataka dismissed the appeal regarding the deduction of 'kist' payable to the State Government, stating that it does not fall under the provisions of section 43B of the Income-tax Act, 1961, based on a previous court decision. The appeal was rejected as lacking merit. (Case citation: 2003 (7) TMI 16 - KARNATAKA High Court)