1996 (7) TMI 101

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....he Income-tax Act, 1961 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in allowing unpaid sales tax liability of Rs. 1,49,988 added back by the Income-tax Officer under section 43B by holding that the notification issued by the Central Board of Direct Taxes No. 496, dated September 25, 1987, has retrospective effect ? (iii) Whether the Tribunal was justified in law to hold that for working out the deduction under sections 80HH and 80-I, the earlier years' losses could not be deducted from the current year's income ? " The brief facts giving rise to these questions are that during the course of assessment proceedings for the assessment year 1984-85, the assessee made substantial claim ....

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.... the assessee. The assessee also claimed a liability of Rs. 1,49,988 towards payment of sales tax which remained unpaid throughout the previous accounting period and in the next succeeding previous year as well. The Assessing Officer invoked the provisions of section 43B and disallowed the claim. On appeal by the assessee, the Commissioner of Income-tax (Appeals) allowed the claim and held that as per the Central Board of Direct Taxes Circular No. 496, dated September 25, 1987, an assessee who is notified to be entitled for the benefit of deferred payment scheme, is entitled to retain the sales tax collected from customers for a period of ten years and for the purposes of the Sales Tax Act and also for the purposes of section 43B of the Ac....