TMI Blog1996 (7) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing questions for the opinion of this court, as arising out of the order dated February 13, 1992, of the Tribunal in ITA No. 641/Nag. of 1987, for the assessment year 1985-86 : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the order of the Commissioner of Income-tax (Appeals) who deleted the addition of Rs. 1,12,269 made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the accounting period relevant to the assessment year 1985-86. It was, however, not disputed that this amount was not paid but only provision for meeting the liability was made. The Assessing Officer disallowed the claim in view of the provisions of sections 43B of the Income-tax Act, 1961. Against the order of the Assessing Officer, an appeal was preferred to the Commissioner of Income-tax (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel for the parties and perused the record. Section 43B as it stood during the period relevant to the assessment year in question provided that notwithstanding anything contained in any other provision of the Act, a deduction otherwise allowable under the Act in respect of any sum payable by the assessee by way of tax or duty under any law for the time being in force shall be allowed only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1008, has held that such amounts charged are "fees" having the requisite element of quid pro quo. From the above decision it is clear that notwithstanding the nomenclature applied, the amount for which the provision was made was "fee" and not tax and, therefore, the provisions of section 43B, in the year in question, were not attracted. In this view of the matter, the addition of Rs. 1,12,269 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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