JAMSHEDPUR MOTOR ACCESSORIES STORES Vs. UNION OF INDIA

JUDGEMENT

(1.) WHETHER the proviso to Section 43B of the Income-tax Act, 1961 (hereinafter called the "Act"), inserted by the Finance Act, 1987, with effect from April 1, 1988, shall apply to an assessment proceeding in respect of the assessment year 1984-85 is the question involved in this application.

(2.) THE fact of the matter lies in a very narrow compass.

(3.) LEARNED counsel submitted that it was never the intention of Parliament, by introducing Section 43B in the Act, not to give deduction of the amount also payable by an assessee by way of tax or by way of contribution to the provident fund or family pension scheme which has been paid within reasonable time after the expiry of the accounting year. He submitted that the correct interpretation of Section 43B is that if an assessee has paid the dues under the aforesaid account before the due date applicable to an assessee for furnishing the return of income under Section 139, the assessee shall be entitled to deduction of that amount. According to Dr. Pal, that that is the correct interpretation of Section 43B will appear from the statement of the Finance Minister made in Parliament and also the purpose for which this section was introduced when the Finance Bill for the insertion of this section was introduced in 1983.