Commissioner of Income Tax vs Hari Oil Mills Ltd.

On an application u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act''), the Tribunal has referred the following question for our opinion :

"Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance u/s 43B of the Income Tax Act, 1961, notwithstanding the fact that the amount of sales tax was paid after the close of the accounting year ?"

At the out-set, Mr. R.B. Mathur, the learned counsel appearing on behalf of the Commissioner, Jaipur, fairly admits that now the issue has been concluded by their Lordships in the case of Allied Motors (P.) Ltd. Vs. Commissioner of Income Tax, Delhi, wherein their Lordships have taken the view that if the sales tax amount has not been paid by the end of the accounting year but paid within the period allowed in the sales tax provisions, then that be allowed as deduction. Considering the submissions and following the view taken by their Lordships in the case of Allied Motors (P) Ltd. (supra), we find no infirmity in the order passed by the Tribunal.

In the result, we answer the reference in favour of the assessee and against the revenue. The reference so made stands disposed of accordingly.