2002 (8) TMI 11 - HC - Income Tax

Whether the Tribunal was correct in holding that the kist amount payable by the assessee to the State Government which has not been actually paid cannot be disallowed under section 43B? Held yes

Summary

The High Court of Karnataka ruled that kist amount payable by the assessee to the State Government, which was not actually paid, cannot be disallowed under section 43B of the Income-tax Act. The court cited a previous judgment stating that only statutory liabilities like tax, duty, cess, or fee fall under section 43B, and kist/rental does not qualify. The appeal was dismissed based on this reasoning.