2002 (6) TMI 11 - HC - Income Tax

Whether the Appellate Tribunal is right in law and on facts in deleting the addition of Rs. 35,272 on account of unpaid sales tax under section 43B of the Income-tax Act, 1961? - The controversy pertains to the amount which was collected by the respondent-assessee as sales tax in the last quarter of the previous year but payable statutorily in the subsequent year. - we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.

Summary

The Gujarat High Court ruled in favor of the assessee regarding the addition of unpaid sales tax under section 43B of the Income-tax Act, 1961 for the assessment year 1984-85. The decision was based on the Supreme Court's interpretation of the first proviso added to section 43B by the Finance Act, 1987. The Court answered the question in favor of the assessee and against the Revenue, disposing of the reference.