1992 (9) TMI 83

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....stitution of India, in brief, are as follows. The Inspecting Assistant Commissioner of Income-tax, while making assessment for the assessment year 1984-85, added a sum of Rs. 21,98,557 stating thus : Rs. " Sales Tax : Out of current year's collection, an amount of Rs. 28,955 remains still to be paid on June 30, 1983. As such section 43B is attracted and the amount is added back. 28,955 Centr....

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....r any law for the time being in force shall be allowed from the income of the previous year in which such sum is actually paid irrespective of the previous year in which the liability to pay such sum was incurred. Mr. A.K. Saraf, learned counsel for the petitioner, has submitted that section 43B shall apply only when an assessee claims deduction in respect of any sum payable by the assessee by ....

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....he declaration does not, however, place any restriction on the business activities and on the system of accounting. Therefore, section 43B shall only be attracted when the assessee claims deduction for any sum payable by way of tax or duty under any law for the time being in force, and, as such, where no such deduction is claimed nor charge made to the profit or loss account, there was no question....

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....'s conclusion that there was no question of disallowing the amount taken to the balance-sheet on the liabilities side and, in those circumstances, the question of any " add back" from the profit and loss account did not arise. I respectfully agree with the decision and it supports the view taken by me. Mr. Senapati, learned counsel for the respondents, has contended that the taxes collected by ....