COMMISSIONER OF INCOME TAX Vs. RAMKUMAR RAJENDRA KUMAR

JUDGEMENT

(1.) In this reference under s. 256(1) of the IT Act, 196 for the asst. yr. 1985 -86 the following questions have been referred to this Court :

(2.) SHORTLY stated the facts are that the relevant previous year of the assessee ended on Ram Navami 2041 corresponding to 30th March, 1985. The assessee, therefore, was required to submit its return of income for the asst. yr. 1985 -86 under reference under s. 139(1) of the Act by 30th July, 1985. In the return filed by the assessee the Assessing Officer found outstanding liabilities as under :

(3.) THE Department came up in appeal before the Tribunal and the Tribunal following the decision of the Ahmedabad Bench in the case of ITO vs . K. S. Lokhandwala held that since the liabilities of sales -tax were duly paid before the due date of furnishing of return of the relevant previous year, the proviso to s. 43B was applicable and the liabilities could not be disallowed. Viewed thus, the Tribunal dismissed the Departmental appeal.