2007 (1) TMI 135

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..... her, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was legally justified in holding that the first proviso to section 43B, inserted by the Finance Act, 1987, with effect from April I, 1988, was retrospective in operation being clarificatory in nature, and thereby directing to restrict the disallowance under section 43B, out of sales tax collections made during the y .....

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..... s confirming the disallowance of Rs. 26,447 in view of Explanation 2 inserted by the Finance Act, 1989, with retrospective effect from April 1, 1984, the learned Commissioner of Income-tax (Appeals) enhanced the assessed income by Rs. 1,75,353 because the deduction on account of that amount of unpaid sales tax liability disallowed by the Assessing Officer, in the assessment year 1986-87 had been a .....

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..... to that extent. While holding so, the Appellate Tribunal pointed out that Explanation 2 to section 43B does not control the first proviso to section 43B but was subject to the said proviso. We have heard Sri A. N. Mahajan, learned standing counsel for the Revenue. In view of the decision of the apex court in the case of Allied Motors P.Ltd. v. CIT [1997] 224 ITR 677, the question referred to w .....

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