ASSOCIATED PIGMENTS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Although this is a matter at the final stage of answer to the questions, and although we have heard learned advocates appearing both for the assessee and for the Department on more days than one, and although authorities were cited on both sides, yet, in our opinion, the matter is of such utter simplicity that it can be disposed of in a very brief compass.

(2.) The questions relate to admissibility of deductions of two several sums of Rs. 1,23,695 and Rs. 2,06,589 paid by the assessee on account of purchase tax during the assessment year in question but those sums being relatable to an earlier accounting and assessment year.

(3.) The claim was made on the basis of actual payment because of the changes introduced in and by Section 43B of the Income-tax Act. That section need not be set out in full as that is easily available. The important point is Explanation 1 contained in the further proviso which states that, for the removal of doubts, it is clarified, that in computing the income of the previous year, being a previous year relevant to the assessment year commencing on April 1, 1983, or any earlier assessment year, in which the liability to pay tax or duty was incurred by the assessee, the assessee shall not be entitled to any deduction in respect of the sum in computing the income of the previous year in which the sum is actually paid by him.