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TMI Blog1990 (10) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... arge thereon, turnover tax and central sales tax during the previous year. The assessee was to contribute towards provident fund and the liability, as on the end of the accounting year, was Rs. 2,422. The aggregate thereof is Rs. 4,22,605. This amount remained unpaid as on the last day of the accounting year (31-12-1983). The assessee claimed deduction on the basis of accrued liability which the Income-tax Officer did not accept. Applying the provisions of sec. 43B, he made an addition of Rs. 4,22,605. 3. The assessee had appealed and the matter was put in a different manner before the Commissioner(Appeals). 4. Under the sales tax accounts, there were opening balances to which credit had been given. For the collections made too, credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We may note here that the Commissioner(Appeals) came to pass his order on 30-6-1986. 6. Before us a new stand was taken by the assessee. Shri Rajagopalan, the learned advocate for the assessee, relied upon the first proviso to sec. 43B to contend that Rs. 4,22,605, collected during the year, had been paid by the assessee before the due date for filing the return. A statement was filed at the hearing which shows that Rs. 4,22,605 had been collected in November and December 1983. Out of that, Rs. 2,422 was provident fund contribution and the remaining comprised of sales tax, surcharge on sales tax, turnover tax and central sales tax. It was not disputed before us that the assessee had paid the collections made in November and December 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of introduction in 1984, under any law for the time being in force, a deduction thereof shall be allowed in the previous year in which it is actually paid irrespective of incurring of that liability in any earlier year. The first proviso is to say that the main provision would not apply in relation to any sum which is paid by the assessee on or before the due date for filing the return of income under sec. 139(1). The Andhra Pradesh High Court has, in the case of S. Subba Rao Co. v. Union of India [1988] 38 Taxman 272, ruled that sales tax collected and not statutorily payable during the relevant previous year did not fall to be disallowed under sec. 43B since the assessee had time to pay. This has been followed by the Pune Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derable light on the ambiguous import of the statutory words, as pointed out in the same case and this has been quoted with approval by Mudholkar J. in the case of Hindustan Ideal Insurance Co. Ltd. v. LIC AIR 1963 SC 1083. 10. An Explanation, normally, should be read to clear up any ambiguity in the main provision and should not be construed as to widen or whittle down the ambit of the section. Explanation, as the very word implies, is only to explain the meaning of the provision. But an Explanation may also be added to include something out of or to exclude something from the ambit of the main enactment. For instance, Explanations 1 2 in Art. 3 of the Constitution of India added by Constitution 18th Amendment Act, 1966. But normally a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be restricted so as not to apply to payments of sales tax of the last quarter although made before filing the return but after the end of the accounting period. In this connection, I am referring to the memorandum explaining the reasons for the insertion of the said Explanation which has been quoted in extenso by my learned Brother. It may be noted that it is the memorandum to this Explanation itself. Therein the last words are of considerable significance in this connection, i.e., 'This proviso was introduced to remove the hardship caused to certain taxpayers who had represented that since the sales tax for the last quarter cannot be paid within that previous year, the original provisions of sec. 43B will unnecessarily involve disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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