9911796707
TMI Blog2012 (1) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... in law – Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... urchased forest produce i.e. wood from the Forest Department of Himachal Pradesh Government. As per agreement, the assessee was liable to pay besides the agreed price of the product, Sales Tax, if any payable by the Forest Department in respect of sale of product to the assessee. The Forest Department initially charged Sales Tax at lower rates from the assessee but in the previous year relevant to asst. Year 1984-85, it was asked by the Forest Department to make payment of Rs. 31,82,371/-. The assessee disputed charging of this additional Sales Tax but made payment of an amount of Rs. 15 lakhs during the previous years relevant to asstt. Years 1984-85 and 1985-86. Simultaneously, the assessee challenged the demand in the H.P. High Court. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he fact that the expression used in the 43B (a) was - "any sum payable". According to the Tribunal, the interest amount of Rs.10,04,408/-, although it was paid in the year in question, could not be allowed as a deduction as it was not a 'sum payable'. The Tribunal came to the conclusion as indicated in paragraphs 9.3 and 9.4 thereof which read as under:- "9.3 Insofar as the assessee's claim for deduction of interest of Rs. 10,04,408/- is concerned, it may be pointed out that in view of the expression "any sum payable" used in Clause (a) of Sec. 43B, read with its definition contained in Explanation (2), there should exist a legal liability by way of tax, duty etc. However, the assessee in this case has not brought on record any material m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has made actual payment of the interest amount, it is not entitled to the grant of deduction for said sum u/s 43B of the I.T. Act." 5. The learned counsel for the assessee, however, pointed out that the moment there was a demand for additional sales tax, if it was not paid within the stipulated time interest became automatically payable on account of the provisions of section 17-A of the Himachal Pradesh General Sales Tax Act, 1968. The said provisions, to the extent relevant, read as under:- "17-A (1) xxxx xxxx xxxx xxxx (2) If the amount of tax or penalty due from a dealer is not paid by him within the period specified in the notice of demand or, if no period is specified within thirty days from the service of such notice, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that as there was no demand for interest, the interest of Rs. 10,04,408/- was not a sum payable and that the Tribunal's decision in this regard ought not to be interfered with. 7. Having considered the arguments advanced by the learned counsel for the parties, we find that the Income Tax Appellate Tribunal has rejected the claim of the assessee only on the ground that the amount of interest of Rs. 10,04,408/- did not fall within the expression "any sum payable" used in Section 43B of the said Act. However, we find that Section 17-A (2) of the Himachal Pradesh General Sales Tax Act, 1968 specifically provides that if the amount of tax or penalty due from a dealer is not paid by him within the period specified in the notice of demand or, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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