COMMISSIONER OF INCOME TAX Vs. RAJASTHAN WINE AGENCIES

JUDGEMENT

(1.) BY this application filed under s. 256(2) of the IT Act, the Revenue prays that Tribunal be directed to refer the following question as set out in para 6 of the application, for the opinion of this Court :

(2.) THE case of the assessee is that assessee has not claimed that deduction of the sales-tax payment, which has been deposited after the period allowed under the Sales-tax Act i.e., the amount of Rs. 2,12,457. During the course of assessment, he submitted the reply to the AO, which has been referred at p. 3 of the assessment order for ready reference, which reads as under : "THE provisions of s. 43B are not applicable in our case. We have never claimed in the past several years as well as in the year under assessment, the deduction on account of payment of sales-tax. THE assessee has to pay sales-tax on quarterly basis. THE sales-tax for the first three quarters in the previous year relevant to the assessment year under assessment has been paid and no deduction has been claimed in this regard. THE amount of sales-tax involved in the fourth quarter is Rs. 2,17,457.45 which we have paid in subsequent year." In spite of that reply, the AO has disallowed the entire sales-tax, which was deposited even before the period permissible under the Sales-tax Act invoking the provisions of s. 43B of the IT Act. In appeal before the CIT(A), CIT(A) has directed that sales-tax amount, which has not been paid even within the period permissible under the Sales-tax Act, only to that extent the disallowance can be made under s. 43B of the Act. THE view taken by CIT(A) has been upheld by the Tribunal in appeal. Even reference application filed under s. 256(1) of the Act has been rejected. Learned counsel for the Revenue, Mr. Mathur supports the view taken by the AO.