Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1992)42ITD719(Hyd.)
..... the amendment made in section 43b by section 10 of the finance act, 1987, with effect from april, 1, 1988, is not clarificatory in nature and cannot be given retrospective effect from april 1, 1984.the said decision is followed by a later division bench of the delhi high court in escorts ltd. v. ..... it was found impossible for an assessee to comply with section 43b as it stood in the year 1984, and to make it workable, amendment in section 43b were introduced by the finance act, 1987. ..... the amendments were intended to make the provisions workable.under the proviso introduced by finance act, 1987, the parliament created an opportunity for the assessee to pay the sales tax on or before the due date applicable in each case for furnishing the return of income in order to entitle him to claim deduction of that amount.the memorandum explaining the provisions in the finance bill, 1989 clarified the object of insertion of the first proviso [see 176 itr (st. ..... ) 123] inter alia, it contained the following: the finance act, 1987, inserted a proviso to section 43b to provide that any sum payable by way of tax or duty, etc. ..... the first proviso to section 43b of the act inserted by the finance act, 1987 was enacted in order to suppress the miscief and for the purpose of giving relief to an assessee who is not an unscrupulous dealer. ..... it was held that the proviso to section 43b introduced by finance act, 1987 is clarificatory in nature and therefore retrospective in operation.13. .....
Tag this Judgment!Court : Delhi
Reported in : (1993)46TTJ(Del)132
..... 43b by the finance acts of 1987 and 1989 are clarificatory because the original s. ..... the cit(a) examined the relevant bills and came to the conclusion that the assessed is not responsible for payment of central excise as it was the duty of the manufacturer and the assessed acted only as a conduit pipe both for collection and refund of central excise. ..... as the provision was harsh and unworkable, amendments were inserted in s. ..... according to the said decisions, the amendments made to s. ..... 41 of the st act, the cit(a) held that the addition was not justified and deleted it. ..... , within the time allowed by the st act. .....
Tag this Judgment!Court : Orissa
Reported in : (1992)101CTR(Ori)247; [1992]198ITR110(Orissa)
..... with a view to get over them, amendments in section 43b were introduced by the finance act, 1987. ..... the original provisos introduced in section 43b by the finance act, 1987, read as follows (see [1987] 166 itr 9) :'provided that nothing contained in this section shall apply in relation to any sum referred to in clause (a) which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such ..... the finance act, 1987, inserted a proviso to section 43b to provide that any sum payable by way of tax or duty, etc ..... from the legislative history set out above, we find that the first proviso to section 43b came into effect from april 1, 1988, and explanation 2 enacted by the finance act, 1989, was made retrospective in its operation with effect from april 1, 1984. ..... both the provisos have been amended by the finance act, 1989. ..... this section was inserted by the finance act, 1983, with effect from april 1, 1984 ..... the memorandum to the finance bill, 1989, clarified the object of deleting the words 'during the previous year' in the following words (see [1989] 176 itr 124 'under the existing provisions of section 43b of the income-tax act, 1961, it is also provided that any sum payable by the assessee as an employer by way of contribution to the provident fund or superannuation fund, etc .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)39ITD1a(Delhi)
..... of the learned counsel for the assessee that if section 53 a of the transfer of properly act regarding part performance of the contract was already included in the definition of transfer then there was no point in amending section 2(47) of the act by the finance act, 1987 w.e.f.1-4-1988. ..... of 'transfer in relation to capital asset' contained in section 2(47) of the act was enlarged by insertion of sub-clauses (v) & (vi) and explanation, of the said section by the finance act, 1987 w.e.f. ..... if a transaction involving the allowing of possession of the immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53 a of the transfer of property act was to be included in the definition of transfer for the purposes of section 2(47) then there was no necessity of inserting sub-clauses (v) & (vi) and explanation to section 2(47).reliance was also placed on the supreme court decision in nawab sir mir ostnan ali khan v. ..... ito [1981] 131 itr 597, it was submitted that sub-section (2) of section 52 of the act could be invoked only where the consideration for the transfer of a capital asset had been understated by the assessee or, in other words, the full value of the consideration in respect of the ..... it was also submitted that reference to part performance of the contract as per section 53 a of the transfer of property act was a supporting argument of the cit (appeals) and that the main argument was that the transfer had taken place .....
Tag this Judgment!Court : Delhi
Reported in : ILR1992Delhi285; [1991]192ITR361(Delhi)
..... section 27(iii), before its amendment by the finance act of 1987, inter alia, provided that for the purposes of sections 22 to 26 of the act, a member of a co-operative society to whom a building or a part thereof is allotted under a house building scheme shall be deemed to be the owner of the building or ..... this provision was amended with effect from april 1, 1988, and, in addition to the same being applicable to co-operative societies, the said sub-section was also made applicable to companies and other ..... obvious that, in order to mitigate the hardships of a large number of flat and property owners who derived their right, title and interest from co-operative societies, companies or associations of persons an amendment was made in section 27(iii). ..... from the provision of section 27(iii) itself, such a member, as contemplated by section 27(iii) is deemed to be an owner only for the purposes of sections 22 to 26 of the income-tax act. ..... evident that it is only for the purposes of sections 22 to 26 of the income-tax act that the person liable to pay tax is the one provided by section 27(iii). 10. ..... according to learned counsel, section 27(iii) of the act purports to set at naught the said principle because it seeks to vest ownership rights in the property of the company in the ..... the petitioners is that, in respect of built-up space in nirmal commercial building, bombay, the petitioners are being treated as owners by virtue of the provisions of section 27(iii) of the income-tax act, 1961. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1991)38ITD138(Ahd.)
..... union of india [1988] 173 itr 708 that in order to apply the provision of section 43b (as it stood prior to amendments by finance act, 1987 and finance act, 1989) not only should the liability to pay the tax be incurred in the accounting year but the amount also should be statutorily "payable" in ..... relates to interpretation of provisions of section 43b of the income-tax act, 1961 as amended by the finance act, 1987 and the finance act, 1989.3. ..... section 43b was amended by finance act, 1987 and finance act ..... on 3-3-1988 considered the amendments made by finance act, 1987 with effect from 1-4-1988 in section 43b of the act. ..... . it has been held by patna high court that under the proviso which was inserted with effect from 1-4-1988 by the finance act, 1987, the words "actually paid" occurring in the main section 43b have in fact been interpreted and as such the said proviso should be regarded as an interpretation clause or a clause which explains what is meant by " actually paid" and that the interpretation given ..... the said proviso was literally interpreted it would be struck down as it provided for doing an impossible act and that it could be upheld by holding that an assessee for the assessment year 1984-85 was entitled to have the benefit of the proviso introduced by the finance act, 1987.the high court held that upon textual interpretation of statutes, the proviso to section 43b of the act should be construed as retrospective in its operation and explanation 2 thereto should be held to .....
Tag this Judgment!Court : Kerala
Reported in : [1991]189ITR165(Ker)
..... in disposing of an identical point by a common judgment dated september 17, 1990, this court held that section 43b of the income-tax act, after amendment by the direct tax laws (amendment) act, 1987, the finance act, 1988, and the finance act of 1989 and explanation 2 to the section which took effect from april 1, 1984, should be considered in order to give effect to the proper position of the law applicable to the instant case. ..... in the circumstances of the case, the amount of unpaid tax collected in the last month of the previous year under consideration which was not claimed as a deduction while computing the income under the income-tax act by invoking the provisions of section 43b of the act could not be brought to tax in the assessment years under consideration ?'2. ..... 41,086 being the sales tax collection in the last month of the year payable to the government before the 20th of the next month, is a permissible addition under section 43b of the act. ..... 211, 212 and 213 of 1987--cit v. ..... 212 of 1987, which was covered by i. t. a. no. ..... 212 of 1987--cit v. ..... 211 of 1987 was heard along with two other cases--i. t. r. ..... 212 and 213 of 1987. ..... 211 of 1987. i. t. r. no. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : (1991)100CTR(P& H)290; [1991]188ITR550(P& H)
..... all these petitions, the petitioners seek the quashment of the respective complaints and the proceedings resulting therefrom, inter alia, on the ground that, before the amendment of section 194a, vide finance act, 1987, which came into force on june 1, 1987, there was no provision like the present explanation to sub-section (1) of this section making the crediting of any interest to any account, whether called 'interest' payable account' or 'suspense account', would amount to crediting the interest payable ..... mittal, learned counsel for the respondent, on the other hand, stated that the explanation inserted by the finance act of 1987 to sub-section (1) of section 194a simply explains the existing provisions of law and had not created any new offence and that, under the mercantile accounting system, the accused-petitioner was bound to show ..... the explanatory notes on the provisions relating to direct taxes while introducing the finance act, 1987 (see [1987] 168 itr 87). mr. ..... the question then arises as to whether it can be read in the un-amended provisions of section 194a of the income-tax act that the crediting of the interest in the interest payable account would be deemed to be payment to the different depositors and the company would be liable for non-deduction ..... fact, this interpretation cannot be disputed because while introducing the finance bill, 1987, the explanatory note clearly provides that the legislature had filled up a lacuna in the existing provisions of section 194.10. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : (1991)99PLR225
..... the quashment of the respective complaint and the proceedings resulting therefrom inter alia, on the ground that before the amendment of section 194a vide finance act, 1987, which came into force on 1-6-1987, there was no provision like the present explanation to sub section (! ..... mittal, learned counsel for the respondent, on the other hand stated that the explanation inserted by finance act of 1987 to sub section (i) of section 194a simply explains the existing provisions of law and had not created any new offence and that under the merchantie accounting system the accused-petitioner was ..... the provisions relating to direct taxes while introducing the finance act 1987 figuring at page 87 (1987) 168 i. t. r. ..... a base glance through the above referred notes leaves no doubt that section 194a has been amended to provide that the tax will be deducted at source on accrual of interest in the end of the accounting year or at the time of crediting to the account of payee or at the time of payment, whichever is ..... with a view to prevent postponement of liability relating to such deduction of tax at source, section 194a has been amended to provide that tax will be deducted at source, on accrual of interest at the end of the accounting year or at the time of credit to the account of a payee or ..... cannot be disputed because while introducing the the finance bill, 1987, the explanatory note clearly provides that the legislature, had filled up a lacuna in the existing provisions of section 194.9. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1991)36ITD115(Ahd.)
..... recent amendments in section 43b by the finance act, 1987 and finance act, 1988 were relied on by epartment in support of the argument to the effect that the sales-tax ollected constituted trading receipt while sales-tax liability which was not discharged in the relevant year by payment was ..... section 43b of the income-tax act, 1961, introduced by the finance act, 1983, with effect from 1-4-1984 provides, inter alia, that a deduction in respect of any sum payable by the assessee by way of tax or duty under any law for the time being in force shall be allowed from ..... the government of maharashtra have by the bombay sales tax (amendment) act, 1987, made the amendment accordingly. ..... the board have decided that where amendments are made in the sales tax laws on these lines, the statutory liability shall be treated to have been discharged for the purposes of section 43b of the act.in the state of gujarat, necessary amendments have been made by executive instructions, copies of which have been filed before us. ..... the ministry of law has opined that if the state governments make an amendment in the sales tax act to the effect that the sales tax deferred under the scheme shall be treated as actually paid, such a deeming provision will meet the requirements of section 43b. 5. ..... 25-9-1987 (published in 1988, 169 itr statute 63) the material portions of which are as follows: sales tax deferral scheme - provisions of section 43b of the income-tax act, 1961 -clarification regarding. .....
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