https://www.taxtmi.com/caselaws?id=187834 Deferred sales tax under an approved State deferment scheme was treated as deemed payment once the State amendment and circulars created a deeming fiction on conversion into loan. On that basis, section 43B of the Income-tax Act did not permit disallowance of the deduction, because the State law itself deemed the liability to have been paid for the relevant purpose. The court also noted supporting authority that unpaid sales tax covered by such a scheme is not hit by section 43B. The assessee's deduction was therefore allowable and the revenue's challenge failed. en-us Tue, 05 Sep 2006 00:00:00 +0530 Tue, 08 Nov 2016 16:53:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=187834 Deferred sales tax under an approved State deferment scheme was treated as deemed payment once the State amendment and circulars created a deeming fiction on conversion into loan. On that basis, section 43B of the Income-tax Act did not permit disallowance of the deduction, because the State law itself deemed the liability to have been paid for the relevant purpose. The court also noted supporting authority that unpaid sales tax covered by such a scheme is not hit by section 43B. The assessee's deduction was therefore allowable and the revenue's challenge failed. Case-Laws Income Tax Tue, 05 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=187834