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2015 (1) TMI 470 - ANDHRA PRADESH HIGH COURTSection 43B of the Income Tax Act, 1961 - Held that:- It is, no doubt, true that Section 43B of the Act prohibits the deduction of component of sales tax transactions of an assessee, unless it has been remitted to the State Exchequer. It is almost common that whenever an assessee receives any amount in the form of sales tax, it would be under obligation to remit it to the State Government and on filing proof thereof, the deduction is allowed. The case on hand presents some typical features. The appellant has been extended the benefit of Deferment of Sales Tax. The appellant is not exempted from paying the sales tax. The only facility extended to it was that it can retain with it, the amount representing the sales tax for a period of six years, but it would be under obligation to remit the accumulated amount at the end of the sixth year without interest. For all practical purposes, the assessee in such cases would be holding the amount. Neither it can be treated as income nor does it become liable to be taxed in any other manner. It represents an expenditure deemed to have been incurred. - Decided in favor of assessee.
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