TaxTMI 
TaxTMI 
1996 (4) TMI 79
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....under the provisions of section 43B of the Income-tax Act ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that sales tax collectible, being a part of the assessee's trading receipts, also forms part of the revenue account and liable to tax ? 3. Whether, the Tribunal was justified in holding that the Commissioner of Income-tax (Appeals) could not have adjudicated on the claim of the assessee, ignoring the amendment to section 43B made with retrospective effect ?" The assessee is engaged in the business of manufacture and sale of T. V. sets, components, etc. The assessment year concerned is 1986-87, the relevant accounting period ended on March 31, 1986. In the accounts for the ye....
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....d question, according to us, is a facet of question No. 1 itself and the second question is covered by the decision of the Supreme Court in Chowringhee Sales Bureau's case [1973] 87 ITR 542 and other decisions. Coming to question No. 1 the question for consideration is whether the Tribunal is justified in holding that the amount of sales tax remaining unpaid on March 31, 1986, could be allowed under the provisions of section 43B of the Income-tax Act, 1961. Section 43B of the Income-tax Act, 1961, was inserted by the Finance Act, 1983, with effect from April 1, 1984. In respect of the items set out in the four clauses of the said section, it virtually supersedes the provisions of section 145 and provides that deduction shall be allowed o....
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....iso to section 43B (the assessment was completed only on March 9, 1989, as could be seen from annexure "A"), the said provision applied and, therefore, the assessee is entitled to deduction of the entire sum of Rs. 9,34,174.56. The assessing authority has not considered the said contention of the assessee. But the first appellate authority, it is seen, has rejected the said contention of the assessee holding that the first proviso to section 43B is not procedural in nature. The first proviso to section 43B provides that nothing contained in section 43B shall apply in relation to any sum referred to in clause (a) or clause (c) or clause (d) which is actually paid by the assessee on or before the due date applicable in his case for furnishing....
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....and figures. The scope and applicability of the amendments effected by the Direct Tax Laws (Amendment) Act, 1987, the Finance Act, 1988, and the Finance Act, 1989, have to be considered in the matter of computation of income in relation to the sales tax collections made during the accounting period, but not paid within the said period. According to us, the contentions of the assessee with reference to the first proviso to section 43B and Explanation 2 thereto have to be considered by the Tribunal with reference to the amendments mentioned hereinabove. For considering the said amendments, it is also necessary that the contention that the assessee had paid the sales tax liability which had been incurred during the previous year within the due....