Law:

Section:

Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment - Assessment year 1989-90 - During relevant accounting period assessee-company collected certain amount of Central sales tax and State sales tax but did not deposit said amount with respective authorities till date return was submitted - Assessing Officer held that assessee's claim that section 43B was not applicable, could not be accepted - He, accordingly, directed that amount collected by assessee would be treated as trading receipt - Commissioner (Appeals) as well as Tribunal set aside order of Assessing Officer - Whether when assessee had not claimed any deduction of amounts collected by it as Central sales tax and State sales tax, section 43B was not attracted at all - Held, yes - Whether, therefore, order passed by Assessing Officer was rightly set aside by Appellate Authorities - Held, yes FACTS The amount of Central and State sales tax collected by the assessee-company during relevant accounting period was not deposited with the respective authorities till the date the return was submitted. The assessee had not claimed any deduction of the amounts of the Central sales tax and the State sales tax collected by him under section 43B. The Assessing Officer directed addition of amount so collected holding that the assessee's claim that section 43B was not applicable was not accepted and the amount collected by the assessee would be treated as a trading receipt. On appeal, the Commissioner (Appeals) held that the question of disallowing the amount in question did not arise as the assessee had not claimed any deduction under section 43B. On appeal by the revenue, the Tribunal was of the view that the issue in question was covered by the decision rendered by the High Court in the assessee's own case which had been confirmed by the Supreme Court. On reference: HELD Whether the Central sales tax and the State sales tax collected would form part of the assessee's income being the trading receipt was not the question considered by any of the authorities. The question which was considered by the Court below was whether section 43B was attracted…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492