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TMI Blog2008 (8) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... B of the Act when the assessee failed to produce any supporting evidence?" 2. The brief facts of the case are that while framing the assessments, for assessment years 1987-88 & 1988-89, the Assessing Officer found that the assessee collected sales tax but the same was not credited into the profit and loss account. The explanation of the assessee was that since the amount has not been credited in the profit and loss account, no deduction has been claimed. Accordingly, Section 43B has no application. Secondly, the amount collected was covered under the Scheme from the State Government whereby the sales tax payable would be converted into loan and it was applied for such conversion. The Assessing Officer was not satisfied with the explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer under Section 43B of the Act to the extent, the amount covered by the certificate and the agreement for deemed payment. 4. Being aggrieved by the said order, the revenue took up the matter before the Income-tax Appellate Tribunal, Ahmedabad and the Tribunal vide its order dated 12.03.1998 confirmed the order of the Commissioner of Income-tax (Appeal) on this point. The Tribunal has observed that before the Commissioner of Income-tax (Appeal), supporting evidence was produced and in view of the Certificate as well as the agreement, addition made by the Assessing Officer under Section 43B of the Act was rightly deleted by the Commissioner of Income-tax (Appeal). 5. In the above background of the matter, the above r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t if the sales tax due to the Government is converted as a loan which may be repaid by the assessee subsequently by installments, the Department shall treat the sales tax dues as actually paid for all purposes. The Gujarat Government in that case passed a Resolution bearing No. INC/1087/143-1, dated 23.03.1988, and the said resolution was made operative from April 1, 1983. A combined reading of the circular as well as the resolution issued by the State Government would make it clear that the assessee is entitled to relief and the benefit given under Section 43B of the Income-tax Act, 1961, can be claimed by the assessee. Similar is the position here. Both the appellate authorities, namely, Commissioner of Income-tax (Appeal) as well as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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