9911796707
TMI Blog2015 (1) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... er. It is almost common that whenever an assessee receives any amount in the form of sales tax, it would be under obligation to remit it to the State Government and on filing proof thereof, the deduction is allowed. The case on hand presents some typical features. The appellant has been extended the benefit of Deferment of Sales Tax. The appellant is not exempted from paying the sales tax. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sideration in this appeal is referable to Section 43B of the Income Tax Act, 1961 (for short the Act). The appellant is an industry running jute mill. It was extended the benefit of the Sales Tax Deferment under the Sales Tax Deferment Scheme (for short the Scheme) for a period of six years in or about the financial year 1991-92. According to the Scheme, the appellant is extended the facility o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, Visakhapatnam, by filing I.T.A.No.531/Vizag/98. The appeal was allowed through order dated 04.09.2003. Hence, this further appeal by the assessee under Section 260A of the Act. Heard Smt. K. Neeraja, learned counsel for the appellant and Sri S.R.Ashok, learned counsel for the respondent. It is, no doubt, true that Section 43B of the Act prohibits the deduction of component of sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. Neither it can be treated as income nor does it become liable to be taxed in any other manner. It represents an expenditure deemed to have been incurred. It is a different matter that if it emerges that the corresponding amount is not remitted at the end of the sixth year, it can, certainly, be treated as income and not only tax can be levied, but also penalty and interest can be imposed. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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