SANGHI MOTORS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE challenge in this writ petition is to S. 43B of the IT Act as in force w.e.f. 1st April, 1984.

(2.) THE petitioner is a dealer in motor vehicle and its accounting year is the calendar year. In respect of the asst. year 1985 -86 the accounting year ended on 31st Dec., 1984. With regard to the sales made for the quarter ending 31st Dec., 1984 the petitioner paid sales -tax on 31st Jan., 1985. The petitioner, however, claimed a deduction of the payment of sales -tax in the accounting year relevant to the asst. year 1985 -86.

(3.) THE ITO while applying S. 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.