TMI Blog2002 (7) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended by the assessee that its case was covered by the provisions contained in section 43B of the Income-tax Act. The Income-tax Officer has, however, rejected the assessee's claim. - We are, of the view that the Tribunal was right in deleting the addition made by the Income-tax Officer by invoking the provision of section 43B in respect of unpaid sales tax liability. - - - - - Dated:- 26-7-2002 - Judge(s) : M. S. SHAH., K. A. PUJ. JUDGMENT The judgment of the court was delivered by K. A. Puj J. -In this reference, at the instance of the applicant-Revenue, the following question of law is referred for the opinion of this court for the assessment year 1985-86 : "Whether the Appellate Tribunal is right in law and on facts in ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 988, wherein the entire position was clarified. The said resolution was made operative with effect from April 1, 1983. On the basis of the said resolution, it was contended by the assessee before the taxing authorities that in the light of the Board's Circular No. 496, dated September 25, 1987, the assessee was entitled to the relief regarding deferred payment of sales tax not hit by section 43B, as the Gujarat Government Resolution dated March 21, 1988, read With the clarification issued by the Sales Tax Department satisfied the condition laid down in the Board circulars. On the basis of the circular issued by the Central Board of Direct Taxes as well as the resolutions of the State Government as referred to above, the Tribunal has taken t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recting the Assessing Officer to allow the claim of the assessee in respect of unpaid sales tax if the same was covered by the specific scheme of the Gujarat Government whereby the deferred payment scheme was converted into interest-free loan particularly when the provisions of section 43B are retrospective in operation was a question of law which had to be referred. Mr. Bhatt has, therefore, urged that the matter may be remanded to the Tribunal to ascertain as to whether any amendment is made by the State Government in Gujarat Sales Tax Act, 1969. Here, in the present case, as already observed hereinabove, the Gujarat Government has passed a resolution bearing No. INC/1087/143-1, dated March 21, 1988, and the said resolution was made op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the amount of any such tax payable by such dealer has been raised by the Gujarat Industrial Investment Corporation Limited or the Gujarat State Financial Corporation Limited, then such tax shall be deemed, in the public interest, to have been paid." Since the resolution issued by the State Government earlier was made effective from 1983, the assessee's case was covered by the said resolution and amendment made thereafter on March 24, 1988, is clarificatory in nature. We are, therefore, of the view that the Tribunal was right in deleting the addition made by the Income-tax Officer by invoking the provision of section 43B in respect of unpaid sales tax liability. We, therefore, answer this question in the affirmative, i.e., in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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