2011 (8) TMI 463

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....dment, the Tribunal was justified in sustaining the addition of Rs. 51,918/- on account of sales tax liability ?" Learned counsel appearing for petitioner submitted that to give effect to the provisions as contained in section 43B, first proviso was inserted w.e.f. 1989, but it was curative in nature and has to be given retrospective effect. Section 43B(a) of the Income-tax Act, 1961 was inserted to meet out various difficulties. He has placed reliance to the Apex Court judgment in Allied Motors (P.) Ltd. v. CIT [1997] 224 ITR 677/91 Taxman 205 and Whirlpool of India Ltd. v. CIT [2000] 245 ITR 3 (SC) and submitted that this reference may be answered in favour of the assessee. 2. Shri Sanjay Lal, learned counsel appearing for Departmen....

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....ore us for our opinion. 4. The controversy involved in this case is squarely covered by the judgment of Apex Court in Allied Motors (P.) Ltd.'s case (supra). A similar question was before the Apex Court. The Apex Court held that section 43B of the Act was inserted w.e.f. 1.4.1984 to discourage tax payers, who did not discharge their statutory liability of payment of excise duty, employer's contribution towards provident fund etc., for long period of time, but had claimed deductions in that regard from their income on the ground that the liability to pay these amounts had been incurred by them in the relevant previous year. After insertion of section 43B of the Act, even if the assessee had regularly adopted the mercantile system ....