2002 (9) TMI 14 - HC - Income Tax

Whether the amount of kist payable by the assessee to the State Government can be allowed as a deduction even when the said sum has not been paid by the assessee in view of the restriction imposed under section 43B of the Income-tax Act 1961? Question is answered in affirmative and in favour of assessee revenue s appeal is dismissed

Summary

The High Court of Karnataka dismissed the Revenue's appeal against the Income-tax Appellate Tribunal's order regarding the deduction of "kist" payable by the assessee to the State Government for the assessment year 1996-97, citing the restriction under section 43B of the Income-tax Act, 1961. The decision was based on a previous ruling in CIT v. Sri Balaji and Co. [2000] 246 ITR 750.