2006 (8) TMI 107

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....ribunal, Ahmedabad Bench "B" has made this reference on the following questions for opinion of this Court: "Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the additional liability of Rs.2,71,855/- on account of royalty pertaining to assessment years 1981-82 and 1982-83 was an allowable deduction in assessment year1985-86, when ....

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....were paid within the statutory permissible time, which was following immediately after the end of the Accounting Year and, therefore, Section 43-B would apply to the facts of the case. 3. The Tribunal on appeal held that Section 43-B of the Act would apply with full force as the actual payment was made in the assessment year 1985-86 and the liability of the assessee was fixed and finalised on J....

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....sum payable by some assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in section 28 of that previous year in whic....

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....is also to be seen that in the matter of CIT v. Nagri Mills Co. Ltd., [1958] 33 ITR 681, judgment delivered on September 28, 1987, before the division and bifurcation of the State of Bombay, the Bombay High Court has observed as under (page 684) : "We have often wondered why the Income-tax authorities in a matter such as this where the deduction is obviously a permissible deduction under the In....