COMMISSIONER OF INCOME TAX Vs. NARENDER ANAND

JUDGEMENT

(1.) The following question of law was framed vide order dated 7.9.2000 to be answered by this Court:

(2.) The Respondent/Assessee was required to file returns for the year ending 31.3.1988 by 31.7.1988. The Assessee, however, filed an application on 29.7.1988 praying for extension of time up to 30.9.1988 to file the return and this request was accepted by the Assessing Officer (for short "AO") vide letter dated 11.8.1988. The return was filed by the Assessee on 6.11.1990 declaring an income of Rs. 48,64,920.00 for the relevant assessment year.

(3.) It is during the assessment proceedings while scrutinizing the return that the AO noticed that the Assessee had not paid the sales tax within time. The Assessee's stand was that the sales tax in the sum of Rs. 1,24,058.00 on 11.8.1988 and Rs. 18,63,682.00 was paid on 11.8.1988 while sales tax amounting to Rs. 17,680.00 was paid on 8.9.1988 . The Assessee, thus, contended that the amount should be considered to have been paid within time allowed for filing of return and thus none of these amounts should be disallowed under Section 43B of the Income Tax Act, 1961 (hereinafter referred to as the "IT Act"). This plea was, however, not accepted by the AO, who disallowed the amount and added the same to the income of the Assessee along with other additions vide order dated 27.3.1991.