Section 43B deduction for sales tax paid before return filing was upheld, with retrospective application of the proviso.

Sales tax paid before furnishing the return under section 139(1) was deductible under section 43B, and the addition could be deleted if payment was made within that time. The proviso to section 43B was treated as procedural and applied retrospectively to earlier assessment years. The Tribunal's direction to verify payment before the due date was upheld, and the settled view favouring the assessee was accepted.

---

---

Issues: Whether the deduction of sales tax was allowable under section 43B of the Income-tax Act, 1961 when the amount had been paid before the due date for filing the return under section 139(1), and whether the proviso to section 43B applied retrospectively to earlier assessment years.

Analysis: The amount represented sales tax collected in the last quarter and was disallowed by the Assessing Officer under section 43B. The Tribunal directed verification of payment before the due date under section 139(1) and allowed deletion of the addition if payment had been made within that time. The proviso to section 43B, though stated to have become effective from 1 April 1988, was treated as procedural in nature and available for earlier years as well. The Court found no reason to take a different view and accepted the settled position that similar questions had been answered in favour of the assessee.

Conclusion: The Tribunal was justified in allowing the deduction if the sales tax had been paid before furnishing the return under section 139(1), and the proviso to section 43B applied retrospectively. The answer was in favour of the assessee and against the Department.

---