9911796707
TMI Blog1996 (4) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the Tribunal is justified in holding that sales tax collectible, being a part of the assessee's trading receipts, also forms part of the revenue account and liable to tax ? 3. Whether, the Tribunal was justified in holding that the Commissioner of Income-tax (Appeals) could not have adjudicated on the claim of the assessee, ignoring the amendment to section 43B made with retrospective effect ?" The assessee is engaged in the business of manufacture and sale of T. V. sets, components, etc. The assessment year concerned is 1986-87, the relevant accounting period ended on March 31, 1986. In the accounts for the year 1986-87, the assessee made a provision for sales tax to the tune of Rs. 9,34,174.56 represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the decision of the Supreme Court in Chowringhee Sales Bureau's case [1973] 87 ITR 542 and other decisions. Coming to question No. 1 the question for consideration is whether the Tribunal is justified in holding that the amount of sales tax remaining unpaid on March 31, 1986, could be allowed under the provisions of section 43B of the Income-tax Act, 1961. Section 43B of the Income-tax Act, 1961, was inserted by the Finance Act, 1983, with effect from April 1, 1984. In respect of the items set out in the four clauses of the said section, it virtually supersedes the provisions of section 145 and provides that deduction shall be allowed only on the basis of actual payment, irrespective of the method of accounting adopted by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xure "A"), the said provision applied and, therefore, the assessee is entitled to deduction of the entire sum of Rs. 9,34,174.56. The assessing authority has not considered the said contention of the assessee. But the first appellate authority, it is seen, has rejected the said contention of the assessee holding that the first proviso to section 43B is not procedural in nature. The first proviso to section 43B provides that nothing contained in section 43B shall apply in relation to any sum referred to in clause (a) or clause (c) or clause (d) which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt) Act, 1987, the Finance Act, 1988, and the Finance Act, 1989, have to be considered in the matter of computation of income in relation to the sales tax collections made during the accounting period, but not paid within the said period. According to us, the contentions of the assessee with reference to the first proviso to section 43B and Explanation 2 thereto have to be considered by the Tribunal with reference to the amendments mentioned hereinabove. For considering the said amendments, it is also necessary that the contention that the assessee had paid the sales tax liability which had been incurred during the previous year within the due date for payment of the same or at any rate, before the due date for filing the return under sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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