9911796707
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Issues:
1. Challenge against notices under section 143(2)/142(1) and section 154 of the Income-tax Act, 1961 for assessment years 1990-91 and 1992-93. 2. Interpretation of section 43B of the Income-tax Act regarding deductions on actual payment. 3. Disallowances proposed by the notices in relation to tax amounts collected under the Central Sales Tax Act. 4. Claim of exemption under section 4A read with section 8(2A) of the U. P. Trade Tax Act and Government orders. 5. Petitioner's contention for stalling assessment proceedings pending a writ petition. 6. Court's decision on interference with the assessment proceedings. Analysis: The judgment concerns a writ petition challenging notices issued under section 143(2)/142(1) and section 154 of the Income-tax Act, 1961 for the assessment years 1990-91 and 1992-93. The notices called for explanations regarding potential disallowances under section 43B of the Act, which allows deductions only upon actual payment. The petitioner argued that section 43B did not apply to their case, specifically concerning tax amounts collected under the Central Sales Tax Act. The petitioner claimed exemption under section 4A read with section 8(2A) of the U. P. Trade Tax Act and Government orders, stating that no tax was payable, hence section 43B was inapplicable. However, the court found no grounds to interfere at that stage, emphasizing the petitioner's opportunity to present defenses during the assessment proceedings. The court highlighted that the pendency of a writ petition did not warrant stalling the assessment process, as the petitioner could address the show-cause notices before the assessing authority and utilize legal avenues for redressal if needed. The court's analysis focused on the application of section 43B of the Income-tax Act, which mandates deductions only upon actual payment. The petitioner's argument regarding the inapplicability of section 43B to their case, particularly concerning tax amounts collected under the Central Sales Tax Act, was considered. The petitioner's reliance on exemption claims under the U. P. Trade Tax Act and Government orders was noted, asserting that no tax was payable, thus section 43B did not apply. However, the court emphasized the petitioner's opportunity to respond to the show-cause notices and present their case before the assessing authority. The court declined interference at that stage, highlighting the petitioner's recourse to challenge any adverse decisions through provisions under the Income-tax Act before relevant authorities. In conclusion, the court dismissed the writ petition without delving into the case's merits, allowing the petitioner to contest the show-cause notices before the concerned authority. The court lifted the stay order, emphasizing the petitioner's right to defend their position during the assessment proceedings. The judgment underscored the petitioner's opportunity to avail legal remedies under the Income-tax Act if dissatisfied with the assessing authority's decision, ensuring due process and avenues for redressal within the legal framework.
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