9911796707
TMI Blog1989 (12) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted on the first issue that, the assessee firm had collected sales tax in the last quarter of its financial year Rs. 23,027 and deposited the same within the statutory time limit as provided under the Sales Tax Laws, though such deposit fell in the next financial year. His plea was that section 43B has been made effective for the asst. year 1984-85 and the Explanation has been added subsequently with retrospective effect, but the proviso added from1-4-1988only clarifies the intention of the Legislature. His plea was, that some benches of the Tribunal after considering the explanation and the proviso had come to hold that, the sales tax collected of the last quarter and deposited within the due date specified under that Act, is to be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es such as sales taxes, is to be allowed in the year of actual payment, irrespective of the year to which such amounts of taxes relate to. The proviso that has been added to the section 43B(1), states that, the assessee shall not be denied deduction, if he pays the taxes before the due date of furnishing of the return of income under section 139(1) and also the evidence in that regard is attached along with the return of income. Though this proviso had been made effective from1-4-1988, it goes to mitigate the hardships of the assessee, who fully comply with the provisions of the Sales Tax Laws and such other laws and deposit the requisite amounts within the statutory time limit, provided under that Act. The Explanation that has been added b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which could never be the intention of the Legislature. The Andhra Pradesh High Court had observed, that, the mischief which the Legislature desired to arrest was the collection of sales tax, etc., by a trader, who does not deposit the same with the government but uses it for his business and not to restrict the deduction in those cases, where payments or deposits are made within the time permitted by the Statute and to deem that it was so intended would be fatal to the provision itself. This conclusion was drawn by the High Court after considering the Explanation as well as, the proviso that was added to the section. The Third Member decision in Nageswar Rice Working Co.'s case has followed this ratio. We are therefore, of the opinion, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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