SWAMI ATMANAND SARASWATI AYURVEDIC SAHAKARI PHARMACY LTD Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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K.P.T.THANGAL, J. M. : -
(1.) THIS miscellaneous application by the Department is directed against the order of the Tribunal dt. 22nd Jan., 1993.
(2.) The original appeals before the Tribunal were directed against orders under S. 263 of the IT Act, 1961, whereby the learned CIT directed the Assessing Officer to add to the total income of the assessee an amount of Rs. 22,467 and Rs. 23,447 being unpaid sales-tax liabilities in view of S. 43B of IT Act, 1961, for asst. yrs. 1984-85 and 1985-86, respectively. Aggrieved by the above direction the assessee filed appeals before the Tribunal.
The case of the assessee before the Tribunal was that the assessee keeps a separate sales-tax account in which the sales-tax collected from the parties was credited and the sales-tax paid to the Government was debited and the balance amount was taken directly to the balance sheet and not to the profit and loss account. The amount so carried to the balance sheet, appearing as liability pertains to the last quarter of assessment years and as per the Sales-tax Act, the said amount becomes payable to the Government only after 40 days and the amount has been paid before 40 days. As such the assessee has discharged its liability before the due date for filing of return under S. 139(1) of the IT Act, 1961.
(3.) ON the above facts, following the decision of the Tribunal, Ahmedabad Bench, in the case of Chandulal Venichand vs. ITO (1991) 40 TTJ (Ahd) 358 : (1991) 38 ITD 138 (Ahd) and the Patna High Court decision in the case of Jamshedpur Motor Accessories Stores vs. Union of India & Ors. (1991) 91 CTR (Pat) 19, the Tribunal directed the Assessing Officer to allow the claim of the assessee after verification of the actual date of payment. In the above referred cases, the Tribunal and the High Court held that the proviso which was introduced by the Finance Act, 1987 is retrospective in operation w.e.f. 1st April, 1984. It is against this order the Department is in miscellaneous application before the Tribunal.;
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