https://www.taxtmi.com/caselaws?id=12007 A sales tax liability adjusted under the Bombay Sales Tax Rules can be treated as actual payment for deduction under section 43B of the Income-tax Act when the statutory scheme creates a legal fiction of discharge. The adjustment under rule 41D read with rule 45(3) was regarded as a deemed payment made through the return itself, not a mere retention of tax, and therefore qualified as payment for section 43B purposes. The mechanism was treated as part of the statutory incentive structure and not as a case of double deduction, so the deduction was allowed in favour of the assessee. en-us Wed, 15 Jan 2003 00:00:00 +0530 Sun, 14 Feb 2010 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12007 A sales tax liability adjusted under the Bombay Sales Tax Rules can be treated as actual payment for deduction under section 43B of the Income-tax Act when the statutory scheme creates a legal fiction of discharge. The adjustment under rule 41D read with rule 45(3) was regarded as a deemed payment made through the return itself, not a mere retention of tax, and therefore qualified as payment for section 43B purposes. The mechanism was treated as part of the statutory incentive structure and not as a case of double deduction, so the deduction was allowed in favour of the assessee. Case-Laws Income Tax Wed, 15 Jan 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12007