TMI Blog2006 (1) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... d law that the jurisdiction of the High Court in a reference is in the nature of advisory jurisdiction and only such issues can be and are answered as arise properly on the facts and the questions referred to the High Court. The Revenue in the appeal did not bring out the real controversy in this case. In view of the above, we return the question referred to us unanswered. - - - - - Dated:- 25-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.P.S. Janarthana Raja J.-At the instance of the Revenue, the Income-tax Tribunal has stated a case and referred the following question of law under section 256(1) of the Income-tax Act, 1961: "Whether, on the facts and in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t deposit the same to the sales tax department. On the other hand, the amount was shown as contingent deposit and the said amount was never paid to the Government and therefore, section 43B of the Act has been rightly applied by the Assessing Officer. Despite service on the respondent/assessee there is no representation. Section 43B of the Income-tax Act reads as follows: "Section 43B.-Certain deductions to be only on actual payment.- Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of- (a) any sum payable by the assessee by way of tax or duty under any law for the time being in force, or (b) any sum payable by the assessee as an employer by way of con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot claimed any deduction of the amount collected by it. The Gauhati High Court, in the case of India Carbon Ltd. v. Inspecting Assistant CIT [1993] 200 ITR 759, considered a similar issue and held as follows: "... the amount of sales tax appeared on the liabilities side of the balance-sheet of the petitioner-company. The petitioner did not claim the added amount as deduction nor did he charge it to the profit and loss account. The amount of sales tax could not be added back to the income of the assessee under section 43B. In the present case, the question was whether section 43B applied and not whether sales tax collected formed part of the trading receipts." In the instant case, the amount had been added by the Assessing Officer under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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