KANDRA GLASS HOUSE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN both the references the Patna Bench of the Income Tax Appellate Tribunal at the instance of the Revenue after drawing a common statement of the case had referred the following questions for our opinion:

(2.) SHORT facts giving rise to these references are that the two assessees realised a sum of Rs. 19,913.00 and Rs. 31,631.00 respectively in May and June i.e. in the last quarter of the accounting year. It did not pay the amount of sales -tax so realised in that accounting year. Both the assessees claim deduction of the amount of sales -tax collected during the last quarter of the accounting year. As the taxes were not paid during the accounting period, the Assessing Officer disallowed the claim considering it to be trading receipt and relying on the provisions of Section 43B of the Income Tax Act (hereinafter referred to as the Act) and added the same in their total income. However, on appeal it was deleted on the ground that the sales -tax collected for the month of May and June were not statutorily payable during the accounting year ending on 19.6.1985 under the provisions of the Bihar Sales Tax Act but paid after close of the accounting year within statutory period. However, on further appeal by the Revenue, the Income Tax Appellate Tribunal, Patna Bench came to the conclusion that any payment beyond accounting period cannot exonerate the assessees from the purview of application of Sec. 43B of the Act and accordingly it allowed the appeal of the Revenue.

(3.) MR . Ashish Agrawal, appearing on behalf of the assessee submits that the questions stand answered by this Court in the case of Jamshedpur Motor Accessories Stores V/s. Union of India and Others, 1991 189 ITR 70. He has drawn our attention to the following passage from the said judgment: