Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2003 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2003 (1) TMI 82 - CALCUTTA HIGH COURT"Whether, on the facts and in the circumstances of the case and having regard to rule 41D and rule 45(3) of the Bombay Sales Tax Rules, the Tribunal was right in law in deleting the disallowance of Rs. 4,05,744 under section 43B of the Act?" - Section 43B of the Income-tax Act allows deduction on tax payable by the assessee. When the assessee purchases raw materials, it is liable to pay purchase tax on the purchase. An equivalent of this amount is adjusted towards the liability on the sale of the product produced out of the raw materials purchased. This adjustment, by legal fiction, is deemed to be an actual payment of the tax liability. Admittedly, this amount is a tax payable. If it is a tax liability on being set off or adjusted, deemed actual payment by legal fiction, it is deductible under section 43B of the Act. - The reference is answered in the affirmative, in favour of the assessee.
|