Statutory dues and provident fund payments made after year-end but before return due date allowed as deduction (s.43B).

The dominant issue was whether statutory dues paid after the end of the accounting year but before the due date for filing the return are allowable under Explanation 2 to s. 43B of the Income-tax Act, 1961. Relying on its binding precedent, the HC held that such payments, including contributions to provident fund and similar dues, qualify for deduction because Explanation 2 (inserted retrospectively from 01.04.1984) permits allowance where payment is made before the return-filing due date. Since the assessee had admittedly paid the relevant amounts before filing the return, the HC found no substantial question of law and dismissed the appeal in limine.

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The High Court of Gauhati dismissed the appeal filed by the Commissioner of Income-tax based on the precedent set in CIT v. Bharat Bamboo and Timber Suppliers. If sales tax is paid before the due date for filing the return of income, the assessee is entitled to relief under Explanation 2 to section 43B of the Income-tax Act, 1961. Contributions towards provident fund were paid before filing the return, leading to the appeal being dismissed. No substantial question of law was involved.

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