TMI Blog2007 (9) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... date fell subsequent to the close of the accounting period. The Assessing Officer disallowed the deduction in view of section 43B of the Income-tax Act. Held that- the payment of sales tax dues within the due date, though after the close of accounting year was deductible in the relevant assessment year. - 169 of 1991 - - - Dated:- 11-9-2007 - PRAKASH KRISHNA , BHARATI SAPRU MS. JJ. JU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith regard to question No. 1 the facts in brief are as follows : 3. The claim of the assessee of sales tax was disallowed under section 43B for the assessment year 1985-86. The assessee claimed deduction of Rs.1,74,400 on account of sales tax payable which was due for payment and was paid within the due date which due date fell subsequent to the close of the accounting period. The Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first proviso to section 43B of the Income-tax Act. 6. In view of the above decision of the apex court, the said question is answered in the affirmative, i.e., in favour of the assessee and against the Department. 7. So far as question No. 2 is concerned, the said question is in two parts. The first part relates to the subsidy received for the generator set and the other part relates to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of depreciation to work out the actual cost of the generator. The Tribunal committed an error of law in holding otherwise. The subsidy given for the generator was not a general subsidy. 10. So far as the question of allowance of depreciation on the generator is concerned, the learned standing counsel has placed reliance upon a judgment of this court Jaunpur Dugdh Utpadak Sahkari Sangh Ltd. v. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the view that the Tri-bunal was not right in holding that the subsidy received for generator is not deductible from the actual cost of the generator to work out the depreciation. The assessee is entitled to depreciation at 15 per cent. in place of 20 per cent. on the generator. We answer the second question in the negative, as discussed above in favour of the Revenue and against the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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