1991 (5) TMI 8

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....able in this case ? " Shortly stated, the facts are that the assessee is a resident company and the assessment year involved is 1984-85 for which the previous year ended on September 30, 1983. The Assessing Officer, in the course of assessment proceedings, found that in the balance-sheet there were outstanding liabilities as under : Rs. (i) Central sales tax 16,060 (ii) U. P. sales tax 21,335 (iii) Provident fund 2,885 The Income-tax Officer disallowed the above liabilities under section 43B of the Income-tax Act, 1961. The assessee challenged the above disallowance before the Commissioner of Income-tax (Appeals) but remained unsuccessful. The Commissioner of Income-tax (Appeals) held that the provisions of section 43B ....

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....d that the amount was not statutorily payable in the accounting year as has been contended before us on behalf of the assessee, in that event, the provisions of section 43B will not apply in this case. We, therefore, direct the Income-tax Officer to ascertain whether the amount of sales tax and provident fund was not statutorily payable in the accounting year. If the assessee's contention in this regard is found to be correct, in that event, section 43B shall not apply and the assessee will be entitled to deduction in respect of the liability relating to sales tax and provident fund. " A similar question came up for consideration in Income-tax Reference No. 104 of 1989 in the case of CIT v. Sri Jagannath Steel Corporation [1991] 191 ITR ....