COMMISSIONER OF INCOME TAX Vs. RAMAWATAR RAJKUMAR

JUDGEMENT

(1.) BY THE COURT : On an application filed under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for our opinion:

(2.) THE assessee is a registered firm. It had collected sales-tax but an amount of Rs. 1,80,045 remained unpaid by the end of the accounting year. The ITO had disallowed the amount invoking of the provisions of S. 43B of the IT Act, 1961. The CIT(A) has also confirmed the view taken by the ITO. In the appeal filed before the Tribunal, the Tribunal has followed the decisions in the cases reported in Escorts Ltd vs. Union of India & Ors. (1991) 93 CTR (Del) 169 : (1991) 189 ITR 81 (Del) and Sanghi Motors vs. Union of India & Ors (1991) 91 CTR (Del) 15 : (1991) 187 ITR 703 (Del) and allowed the claim of the assessee.

(3.) WE have heard Mr. J.K. Singhi, learned counsel appearing on behalf of the Revenue. Mr. Singhi, fairly admitted that the issue involved in the instant reference has already been decided by Their Lordships of the apex Court, in Allied Motors (P) Ltd. vs. CIT (1997) 139 CTR (SC) 364 : (1997) 224 ITR 677 (SC) wherein Their Lordships have taken the view that if the amount has not been paid by the end of the accounting year and paid within the period allowed by the statute, the deduction of that amount should not be allowed (sic-disallowed).