https://www.taxtmi.com/caselaws?id=161295 Sales tax liability adjusted under the Bombay Sales Tax Rules was treated as deemed payment for deduction under section 43B of the Income-tax Act, because the set-off mechanism in rules 41D and 45(3) legally operated as discharge of the admitted tax liability. The absence of cash outflow did not defeat deduction where the statutory scheme itself recognised the adjustment as payment. The objection based on double deduction was rejected, as the set-off reflected the incentive structure of the sales tax rules rather than a second claim. The amount adjusted was therefore deductible under section 43B. en-us Wed, 15 Jan 2003 00:00:00 +0530 Mon, 13 Jan 2014 17:59:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=161295 Sales tax liability adjusted under the Bombay Sales Tax Rules was treated as deemed payment for deduction under section 43B of the Income-tax Act, because the set-off mechanism in rules 41D and 45(3) legally operated as discharge of the admitted tax liability. The absence of cash outflow did not defeat deduction where the statutory scheme itself recognised the adjustment as payment. The objection based on double deduction was rejected, as the set-off reflected the incentive structure of the sales tax rules rather than a second claim. The amount adjusted was therefore deductible under section 43B. Case-Laws VAT and Sales Tax Wed, 15 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=161295