COMMISSIONER OF INCOME TAX Vs. JANARDHANAN PILLAI P

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal (in short, "the Tribunal") has referred the following question of law for the decision of this court :

(2.) THE respondent is an assessee to income-tax. We are concerned with the assessment year 1984-85. THE short question that arises for consideration is whether the addition of Rs. 41,086 being the sales tax collection in the last month of the year payable to the Government before the 20th of the next month, is a permissible addition under Section 43B of the Act. THE Tribunal answered the question in favour of the assessee and allowed the appeal filed by the assessee, following its earlier decision rendered in I. T. A. No. 20(Coch) of 1986 dated 31-7-1986. On the motion of the Department, a question of law was referred to this court from I. T. A. No. 20(Coch) of 1986, which was the subject-matter of I. T. R. No. 211 of 1987. I. T. R. No. 211 of 1987 was heard along with two other cases--I. T. R. Nos. 212 and 213 of 1987. THE respondent-assessee herein was the respondent-assessee in I. T. R. No. 212 of 1987--CIT v. Govindaraja Reddiar [1991] 187 ITR 417. In disposing of an identical point by a common judgment dated September 17, 1990, this court held that Section 43B of the Income-tax Act, after amendment by the Direct Tax Laws (Amendment) Act, 1987, the Finance Act, 1988, and the Finance Act of 1989 and Explanation 2 to the section which took effect from April 1, 1984, should be considered in order to give effect to the proper position of the law applicable to the instant case. Since it was not so done by the final fact-finding authority, this court declined to answer the question referred to this court but, at the same time, directed the Tribunal to restore I. T. A, Nos. 20, 26 and 31 (Coch) of 1986 to file and decide the matter afresh in accordance with law. THE respondent-assessee herein was the respondent-assessee in I. T. R. No. 212 of 1987, which was covered by I. T. A. No. 36(Coch) of 1986. Following the earlier Bench decision of this court, rendered in the case of the very same assessee, we decline to answer the question referred to this court by the Tribunal but, at the same time, direct the Tribunal to restore the appeal--I. T. A. No. 335(Coch) of 1986 to file and dispose of the matter afresh in accordance with law and in the light of the directions and observations contained in the common judgment delivered by this court on September 17, 1990, in I. T. R. Nos. 211, 212 and 213 of 1987--CIT v. Govindaraja Reddiar [1991] 187 ITR 417.