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TMI Blog2009 (10) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... is interpretation has to be consistent for every tax deferral scheme and the interpretation cannot change from Act to Act. The CBDT has not granted any exemptions from the provisions of Section 43B but has held that if its instructions are complied with then it will be deemed that the requirement of Section 43B has been met. This will be applicable across the Board to all Acts and cannot be limited only to the Sales Tax Acts. - However, the assessee must produce before the Assessing Officer the requisite certificates showing that it is covered under the deferral Scheme X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner, Income Tax (Appeals) on the basis of Circular dated 2.9.1996 held that the assessee could not be denied the benefit of Circular No.496. The Income Tax Appellate Tribunal, Chandigarh upheld the order the C.I.T. 4. Hence the present appeal by the revenue. Mrs.Vandana Kuthiala, Advocate appearing on behalf of the revenue has argued that the Circulars No.496 and 674 only make reference to Sales Tax Act and not to luxury tax and, therefore, the luxury tax deferral scheme is not exempt. She has placed reliance on Section 43B of the Income Tax Act which provides that deduction allowable under the Income Tax Act in respect of the tax can only be allowed in the year in which the same is actually paid by the assessee. She has contended th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43B" 7. It appears that in a number of States, amendments were not carried out in the Act as directed in Clause 4 quoted hereinabove and the State Governments prayed that the amounts covered under the scheme be allowed as deduction for the previous year in which the conversion has been permitted by the State Governments. The Board re-considered the matter and issued another Circular No.674 on 29.12.1993. Relevant portion of it reads as follows:- "The Board have considered the matter and are of the opinion that such deferral schemes notified by the State Governments through the Government orders meet the requirements of the Board's Circular No.496, dated 25.9.1987, in effect though in a different form. Accordingly, the Board have decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars issued by the CBDT relate to the manner in which Section 43B of the Act has to be interpreted. This interpretation has to be consistent for every tax deferral scheme and the interpretation cannot change from Act to Act. The CBDT has not granted any exemptions from the provisions of Section 43B but has held that if its instructions are complied with then it will be deemed that the requirement of Section 43B has been met. This will be applicable across the Board to all Acts and cannot be limited only to the Sales Tax Acts. 11. However, we may point out that before taking benefit of the deferral scheme, the assessee must produce before the Assessing Officer the requisite certificates showing that it is covered under the deferral Scheme. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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