COMMISSIONER OF INCOME TAX Vs. ERICSSION INDIA LTD

JUDGEMENT

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

(2.) THE assessee being aggrieved by the said order agitated the dispute before the CIT (A). The assessee submitted before him that it did not make any claim for deduction of sales-tax in computing the total income chargeable to tax and, therefore, the provisions of S. 43B would not be applicable under said circumstances. It was further submitted by the assessee that the sales-tax has neither accrued nor became due for payment during the relevant accounting year and the provisions of S. 43B would not be applicable where the time for discharge of tax was not over by the end of the account in the year. The CIT (A) did not accept the assessee's contention on both the pleas. He held that S. 43B was not concerned with the reasons why the liability was not discharged at the end of the previous year and as long as the liability was not discharged, disallowance was to be made under the said section. Accordingly, the CIT (A) upheld the disallowance of Rs.37,592.

(3.) IT is not in dispute that these two questions are now concluded by the decision of this Court in the case of CIT vs. Sri Jagannath Steel Corpn. (1991) 191 ITR 676. Following the said decision we answer both the questions in the affirmative and in favour of the assessee. There will be no order as to costs. Sen, J.: I agree.