Kist payments to the State Government fall outside section 43B, so non-payment does not bar deduction.

Kist payable to the State Government was characterised as a rental liability, not a statutory impost in the nature of tax, duty, cess or fee. Section 43B applies only to specified statutory liabilities and cannot be extended to amounts outside that class. Following earlier authority, unpaid kist was held not to fall within section 43B, so deduction could not be disallowed merely because payment had not been made.

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Issues: Whether kist payable to the State Government is deductible despite non-payment by reason of section 43B of the Income-tax Act, 1961.

Analysis: The liability in question was held to be a kist/rental payment and not a statutory impost in the nature of tax, duty, cess or fee. Section 43B applies only to those statutory liabilities specifically falling within its ambit, and cannot be extended to amounts that do not answer that description. The issue was covered by an earlier decision holding that unpaid kist payable to the Government does not come within section 43B.

Conclusion: The amount of kist payable to the State Government was not hit by section 43B, and the deduction could not be disallowed on the ground of non-payment.

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