COMMISSIONER OF INCOME TAX Vs. RAM SINGH GARG

JUDGEMENT

(1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions for the opinion of this court:

(2.) THE assessee is a registered firm and had claimed liability on account of sales tax amounting to Rs. 85,788, which was disallowed by the Assessing Officer on the ground that the payment was made after the close of the accounting year. THE relevant assessment year is 1987-88. In appeal, the Commissioner of Income-tax (Appeals) has upheld this disallowance. In appeal before the Tribunal, the Tribunal has allowed the claim of the assessee following the decision reported in CIT v. Bimal Mrishna Sil and Bros. Mr. Gargia, learned counsel for the assessee, submits that now the issue has been concluded by the apex court that if the liability of sales tax has not been paid before the due date but paid as provided in the proviso to Section 43B of the Act, which clarifies that if the amount of sales tax has been paid after submission of returns but within the grace period allowed under the relevant provisions of the sales tax, the deduction under Section 43B cannot be denied.