TMI Blog2011 (8) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... of the previous year, in which the liability to pay such sum was incurred and the evidence of such payment is furnished by the assessee along with the return - held in the above case that that the aforesaid proviso was inserted to give effect to the provisions as contained in section 43B of the Act and was retrospective in nature - Thus held that Tribunal was not justified in sustaining the addition of sales tax liability, which was actually paid by the assessee within the statutory period - Decided in the favour of Petitioner - T.R.No. 1 of 2011 - - - Dated:- 16-8-2011 - Krishn Kumar Lahoti And Smt. Vimla Jain, JJ. Ajay Mishra for the Petitioner. Sanjay Lal for the Respondent. ORDER 1. This is a reference by the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes to the assessment year 1984-85, accounting year ending on 31.3.1984. The petitioner firm in that accounting year made a provision of ₹ 51,918/- for the payment of sales tax liability pertaining to period of February March 1984. This tax, an amount of ₹ 51,123/-, was paid on 31.5.1984. In the relevant year the last date of filing of Income Tax return was 30.6.1984. The petitioner herein claimed aforesaid deduction in the assessment year 1984-85. The assessing officer by interpreting section 43B held that without actual payment, no provision can be made for payment of sales tax and no deduction in that regard could have been allowed unless actually paid within the accounting year. The assessing officer had made addition in inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not entitled to claim any deduction for it. This was not intended by section 43B. To avoid this kind of unexpected outcome of section 43B, the first proviso was added in section 43B by the Finance Act of 1988. The proviso makes it clear that the section will not apply in relation to any sum which is actually paid by the assessee in the next accounting year, if it is paid on or before the due date for furnishing the return of income in respect of the previous year, in which the liability to pay such sum was incurred and the evidence of such payment is furnished by the assessee along with the return. The Apex Court considered this question on page nos. 682 and 683 of the report, held that the view of Delhi High Court by which held that the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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