TMI Blog1991 (6) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of the Income-tax Act, 1961, reads thus : "Whether, on the facts and in the circumstances of the case, while-computing the income on accrual basis on the mercantile method of accounting in accordance with section 145, sales tax which was an accrued liability, not payable within the accounting year, could be added back under section 43B of the Income-tax Act, 1961 ? " The question pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby disallowed the claim of the assessee for deduction. Ultimately, the matter came up before the Appellate Tribunal. The Tribunal also upheld the deduction. Several reasons are given by the Appellate Tribunal ultimately holding that section 43B of the Income-tax Act, 1961, was not at all applicable to the facts of the case. Hence, the Revenue has sought this reference. The Appellate Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1989. The effect of this Explanation is that every sum payable by an assessee if not paid during the relevant accounting year cannot be deducted under the main provision of section 43B even though the liability was incurred during the said accounting year. Whatever argument that may have been available to the assessee as to the interpretation of the phrase " any sum payable " found in the main pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant accounting period as stated in the proviso ; that is to say, even though the liability for payment arose earlier and the accounting year stood closed and the payment was made during the next accounting year, still the payment is traced back to the benefit of the earlier accounting year in case the assessee had made the payment before the return of income was filed on or before the due date a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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