2017 (9) TMI 385

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.... 43B of the Income Tax Act, 1961, (for short the "Act") in respect of the amount of Rs. 2,65,35,000/- alleged to have been deposited by it as excise duty for the previous year 1996-97 prior to filing of return for the assessment year in question. The Assessing Officer vide order dated 21.3.2005 declined to allow the aforesaid deduction as no evidence for the payment of the aforesaid excise duty was produced for verification. In appeal, the Commissioner of Income Tax (Appeals) vide order dated 29.9.2005 allowed the above deduction in computing the income of the assessee under Section 28 of the Act with the finding that the aforesaid amount of excise duty was paid before filing of the return. The aforesaid finding has been followed b....

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....f the Act necessary for our purpose reads as under; 43B. Certain deductions to be only on actual payment.- ........................a deduction otherwise allowable under this Act in respect of - (a) any sum payable by the assessee by way of tax or duty ...................... (b) ........................ (c) ......................... (d) .......................... (e) ........................... (f) ............................ (g) .......................... shall be allowed ------------- only in computing the income referred to in Section 28 of that previous year in which such sum is actually paid by him. There is a proviso attached to it which reads as under; "Provided that nothing contained in this section ....

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....nd (2). evidence of such payment is furnished by the assessee along with such return. In other words, not only the payment of tax or duty in the previous year or on or before due date of furnishing return but also furnishing of evidence of such payment alongwith the return is mandatory. The furnishing of evidence of payment has been made mandatory so as to permit verification of its actual payment and the period to which such payment relates. In the present case, there may not be any dispute that the amount of the excise duty as referred to above was paid by the assessee on or before due date of filing return but no evidence for its payment was produced for verification. Therefore, the Assessing Officer refused to allow deduction u....