TMI Blog2002 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... est payable to the Sales Tax Department is also 'tax' and the provisions of section 43B of the Act are applicable therein?" - the liability to pay interest is an allowable deduction. The object of section 43B is to curb the activities of those taxpayers who do not discharge their statutory liability of payment of sales tax or excise duty for long periods but claim deduction in that regard from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment is also 'tax' and the provisions of section 43B of the Act are applicable therein?" The brief facts of the case are that the assessee, Mewar Motors, Udaipur, is a partnership firm engaged in purchase and sale of scooters, motor-cycles, cars and accessories. The assessee filed the return showing total income of Rs. 1,96,045. The assessment was completed at the returned income. A notice und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 5,80,293. The Assessing Officer treated the said amount of unpaid interest as part of the sales tax and disallowed the same under section 43B of the Income-tax Act. The Commissioner of Income-tax (Appeals) arrived at the conclusion that the order under section 143(3) read with section 148 was erroneous and pre judicial to the interests of the Revenue on account of the following mistakes: (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax to the effect that the order of the Assessing Officer allowing the claim of the assessee is erroneous and prejudicial to the interests of the Revenue. The Tribunal accordingly rejected the claim of the assessee to that extent. None has appeared for the assessee in spite of service. We have heard Mr. Bhandawat, learned counsel for the Revenue. The question referred stands answered by the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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