TMI Blog2014 (6) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... rein that we find that this question cannot be termed as substantial question of law. Deduction u/s 43B on account of non payment of Sales Tax - - ITAT allowed the claim - Held that:- Tribunal has held in favour of the Assessee by observing that the liability in relation thereto was also an issue raised for Assessment Year 1984-1985. . The Revenue surprisingly does not question the common order of the Tribunal for these years. See CIT v. Hindustan Lever Ltd [2014 (4) TMI 1012 - BOMBAY HIGH COURT ]. The question will have to be decided against the Revenue and in favour of the Assessee. Expenses incurred on installation of computer software, expenses on electrical work and expenses on installation of lifts - whether fall within the amb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons (1) and (2) are common to both Appeals read as under:- (i) Whether on the facts and in the circumstances of the case and in law, was the Tribunal right in allowing deduction for provision made on account of liability towards contribution to Drug Price Equalization Account (DPEA), ignoring the fact that the liability being a mere provision was contingent in nature had not crystallized during the Previous Year? (ii) Whether on the facts and in the circumstances of the case and in law, was the Tribunal right in allowing deduction u/s 43B on account of non payment of Sales Tax? (iii) Whether on the facts and in the circumstances of the case and in law, was the Tribunal right in holding that expenses incurred on installation of com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Mr. Pardiwalla, learned Senior Counsel appearing for the Assessee, that the Tribunal has not committed any serious and grave error of law as projected. The Tribunal has in accepting the stand of the Assessee concluded that the liability is for contribution to the Drug Price Equalization Account. The Assessee may have disputed the liability insofar as this contribution, however, the liability is clearly ascertainable one. There was no stay against accrual of the liability under clause 7(2) of the Drug Price Control Order. This being a statutory liability it is allowable in the year in which it arises irrespective of whether the Assessee disputes it or accepts the same. 5. Mr.Pardiwalla submits that this is the consistent view and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of non payment of sales tax, the Tribunal has held in favour of the Assessee by observing that the liability in relation thereto was also an issue raised for Assessment Year 1984-1985 in Income Tax Appeal No.4160/B/1988. We find that the Tribunal answered that issue in favour of the Assessee for that Assessment Year. Two Appeals which have been brought before us by the Revenue pertain to the Assessment Years 1985-1986 and 1986-1987. The Tribunal also had before it the Appeals pertaining to the Assessment Years 1983-1984 and 1984-1985. The Revenue surprisingly does not question the common order of the Tribunal for these years. Further, we find that a Division Bench of this Court had, in the Application being Income Tax Application No.10/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the light of enduring benefits. 12. In relation to this the Tribunal in the impugned order observed that there is room for certain flexibility in the views taken from time to time. The Assessee in such cases installs the computers. This technology is now said to be acceptable in changing world. The rapid advancement of research also contributes a small degree of endurability, but that by itself does not mean that the expenses incurred cannot be revenue in nature. Since technology advancement is an aspect which must be taken judicial note of, so also, machinery becoming obsolete that there is necessity of acquiring further technology. This is to meet the growing competition and considering trends in the market. Therefore, such expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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