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Cit Vs. Sita Ram Rameshwar Prasad - Court Judgment

SooperKanoon Citation

Subject

Direct Taxation

Court

Rajasthan High Court

Decided On

Case Number

IT Ref. No. 26 of 1993 12 February 2002 A.Y. 1984-85 to 1986-87

Reported in

(2002)175CTR(Raj)168

Appellant

Cit

Respondent

Sita Ram Rameshwar Prasad

Advocates:

 J.K. Singhi, for the Revenue Mahendra Gargia with Naresh Kumar Gupta, for the Assessee

Excerpt:


counsels: j.k. singhi, for the revenue mahendra gargia with naresh kumar gupta, for the assessee head note: income tax business disallowance under s. 43b--sales tax liabilitypaid within prescribed time catch note: no disallowance was to be made under section 43b in respect of outstanding sales-tax liability shown in balance-sheet at the end of relevant accounting year as the said liability had been discharged by assessee within time prescribed under relevant sales-tax law. ratio: no disallowance was to be made under section 43b in respect of outstanding sales-tax liability shown in balance-sheet at the end of relevant accounting year as the said liability had been discharged by assessee within time prescribed under relevant sales-tax law. case law analysis: allied motors (p) ltd. v. cit (1997) 224 itr 677 (sc) followed. application: also to current assessment year. decision: in favour of assessee. income tax act 1961 s.43b in the rajasthan high court, jaipur bench y.r. meena & a.c. goyal, jj. - .....of the income tax act, 1961, the tribunal has referred the following questions for the opinion of this court :asst. yr. 1984-85'whether on the facts and in the circumstances of the case, the tribunal erred in law in holding that no disallowance was to be made under section 43b of the income tax act, 1961, in respect of outstanding sales-tax liability of rs. 34,576 shown in the balance-sheet at the end of the relevant accounting year as the said liability had been discharged by the assessee within the time prescribed under the relevant sales-tax law ?'asst. yr. 1985-86'whether, on the facts and in the circumstances of the case, the tribunal erred in law in holding that no disallowance was to be made under section 43b of the income tax act, 1961, in respect of outstanding sales-tax liability of rs. 2,210 shown in the balance-sheet at the end of the relevant accounting year as the said liability had been discharged by the assessee within the time prescribed under the relevant sales-tax law ?'asst. yr. 1986-87'whether, on the facts and in the circumstances of the case, the tribunal erred in law in holding that no disallowance was to be made under section 43b of the income tax.....

Judgment:


By the Court

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 :

Asst. yr. 1984-85

'Whether on the facts and in the circumstances of the case, the Tribunal erred in law in holding that no disallowance was to be made under section 43B of the Income Tax Act, 1961, in respect of outstanding sales-tax liability of Rs. 34,576 shown in the balance-sheet at the end of the relevant accounting year as the said liability had been discharged by the assessee within the time prescribed under the relevant sales-tax law ?'

Asst. yr. 1985-86

'Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that no disallowance was to be made under section 43B of the Income Tax Act, 1961, in respect of outstanding sales-tax liability of Rs. 2,210 shown in the balance-sheet at the end of the relevant accounting year as the said liability had been discharged by the assessee within the time prescribed under the relevant sales-tax law ?'

Asst. yr. 1986-87

'Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that no disallowance was to be made under section 43B of the Income Tax Act, 1961, in respect of outstanding sales-tax liability of Rs. 9,267 shown in the balance-sheet at the end of the relevant accounting year as the said liability had been discharged by the assessee within the time prescribed under the relevant sales-tax law ?'

2. At the outset, learned counsel for the assessee submits that now the issue is concluded by their lordships in the case of Allied Motors (P) Ltd. v. CIT : [1997]224ITR677(SC) . Learned counsel for the revenue has not controverted this fact.

Following the view taken by their Lordships in the case of Allied Motors (P) Ltd. v. CIT (supra), we answer all these questions in negative that the Tribunal has not erred in allowing the deduction of the amount of sales-tax, which has been paid within the time prescribed under the relevant sales-tax law i.e., in favour of the assessee and against the revenue.

Reference so made stands disposed of accordingly.




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