COMMISSIONER OF INCOME TAX Vs. INDUS SERVICES LTD

JUDGEMENT

(1.) IN this reference under S. 256(1) IT Act, 1961("the Act") for the asst. yr. 1984-85 the following questions of law have been referred to this Court:

(2.) ON appeal by the assessee, the CIT (A) confirmed the above addition made by the AO for violation of the provisions of S. 43B although the assessee contended that the impugned amounts represented sales-tax collected for the last quarter payable within 30 days from the end of the accounting period and that the amounts were duly paid in time. The CIT (A) decided the issue according to the ratio of the Supreme Court judgement in the case of Chowringhee Sales Bureau (P) Ltd. vs. CIT 1973 CTR (SC) 44 : (1973) 87 ITR 542.

(3.) IT is not in dispute that these questions are now concluded by the decision of the Court in the case of CIT vs. Sri Jagannath Steel Corpn. (1991) 191 ITR 676. Following the said decision we answer the first question in the affirmative. So far as the second question is concerned, we answer by saying that the AO shall examine the question of payment of sales tax and allow the same in accordance with the principles laid down by this Court in the aforesaid decision.