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Issues Involved:
The appeal against the order of the Commissioner (Appeals) relating to the disallowance of a sum under section 43B of the Income-tax Act, 1961 for the assessment year 1984-85. Details of the Judgment: Issue 1: Disallowance under section 43B The assessee, a company, appealed against the disallowance of Rs. 23,918 under section 43B of the Income-tax Act, 1961. The Income Tax Officer (ITO) added back the amount as it was shown as due to the Sales Tax Department but not paid during the year. The Commissioner (Appeals) upheld the decision, stating that the sales tax collected by the assessee had to be included in the sales. The assessee argued that the consistent method of accounting followed by them should be considered, as the amount was not claimed as a deduction. The Tribunal noted that the assessee had been paying sales tax within statutory dates, and the unpaid amount was not deposited during the year as it was not payable within that year. The Tribunal referred to previous decisions and held that the sum deserved to be deleted from the total income of the assessee, as section 43B was not applicable in this case. Decision: The Tribunal allowed the appeal, ruling in favor of the assessee and directing the modification of the assessment accordingly.
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