9911796707
TMI Blog1990 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ember 31, 1984, the petitioner paid sales tax on January 31, 1985. The petitioner, however, claimed deduction of the payment of sales tax in the accounting year relevant to the assessment year 1985-86. The Income-tax Officer, while applying section 43B, disallowed the said deduction claimed and added back the amount. On the basis of the said add back, additional tax has been sought to be recovered from the petitioner. It is also contended that proceedings for penalty and levy of interest have also been initiated. Section 43B, as it stood in the assessment year 1985-86, reads as under: "Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of (a) any sum payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d only in the year in which the tax is actually paid. In the present case, the tax having been paid on January 31, 1985, it would be, in the case of the petitioner, in the accounting year ending January 31, 1985, and corresponding to the assessment year 1986-87, that the deduction can be claimed. It is submitted that this provision, namely, section 43B, is arbitrary and is impossible of compliance. It is true that there may be some difficulty in the petitioner paying sales tax in respect of sales made towards the end of the quarter ending December 31, 1984, but it is not as if the deduction to the petitioner is denied. The only thing that happens is that the deduction can be claimed in the year in which the tax is actually paid, namely, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 of the Constitution. It was next submitted by Dr. Singhvi that the amendment to section 43B has been made in the year 1987 and this amendment, with effect from April 1, 1988, is clarificatory in nature and by applying the said amendment the petitioner was entitled to relief. We are unable to agree with this submission. The amendment clearly states that it is With effect from April 1, 1988. This being so, it is not possible to give the amending provision retrospective effect with effect from April 1, 1984. It was lastly contended that a similar writ petition has been filed in this court, being Civil Writ No. 776 of 1990 and, in that case, notice to show cause has been Issued and stay was granted. We find that rule nisi has not been issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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