Commissioner of Income Tax vs A. Janardhana Shetty

T.N. Vallinayagam, J.—The Income Tax Appellate Tribunal has referred the following question of law arising out of its order dated November 25, 1994, pertaining to the assessment year 1984-85.

"Whether, on the facts and in the circumstances of the case, particularly having regard to the changed provisions in the Karnataka Excise Act, 1965, especially the provisions of Section 24 of the said Act, the Tribunal was right in law in holding that ''kist'' amount payable to the Government by the assessee could not be brought within the purview of the provisions of Section 43B of the Income Tax Act, 1961 ?"

The question raised in the present matter is answered by this court in Commissioner of Income Tax Vs. Sri Balaji and Co., D. Dasappa, Renukasri and Co., S.S.B. Gowdaiaha and Sons, Tirumal Traders, Sri Rajeshwari Enterprises, Anjanappa and Co. and P.K. Shankaranarayana and Co., , and other connected matters decided on January 5, 2000. Accordingly it is held that the Income Tax Appellate Tribunal was justified in holding that kist amount payable to the Government by the assessee would not be brought within the purview of Section 43B of the Income Tax Act.

Reference is answered in favour of the assessee and against the Revenue.