Decided on September 26,1994



V.K. Sinha, Accountant Member - (1.) THIS is an appeal filed by the assessee. The main dispute relates to the order of the CIT(A) confirming disallowance of unpaid sales tax of Rs. 54,319 under Section 43B of the Income-tax Act, 1961.
(2.) The facts, in brief, are that Bihar sales-tax amounting to Rs. 47,159 and Central sales-tax amounting to Rs. 7,260 remained unpaid on the last date of the previous year, i.e., 31-12-1985. Total amounts to Rs. 54,319. The due date for filing the return of income under Section 139(1) of the Income-tax Act, 1961 was 30-6-1986 and it is an admitted position that the above outstanding amounts were paid after 30-6-1986. The assessee is, therefore, not saved by the first proviso below Section 43B of the Act, even if the first proviso is treated as clarificatory and operative from 1-4-1984, as held by the Patna High Court in the case of Jamshedpur Motor Accessories Stores v. Union of India [1991] 189 ITR 70. The amount was accordingly disallowed by the Assessing Officer and the disallowance was confirmed by the CIT(A). The ld. counsel for the assessee has advanced a novel argument before us. Our attention has been invited to Chapter IV of the IT Act, 1961 dealing with "Computation of total income". Section 14 gives the classification of the heads of income and contains, inter alia, "D - Profits and gains of business or profession". Thereafter Section 28 enumerates income chargeable to income-tax under the head "Profits and gains of business or profession". Section 29 lays down how such income shall be computed and is reproduced below for the sake of convenience, as it stood in assessment year 1986-87: Income from profits and gains of business or profession, how computed. 29. The income referred to in Section 28 shall be computed in accordance with the provisions contained in Sections 30 to 43A.
(3.) THE Id. counsel for the assessee submitted before us that "43B" was substituted for "43A" by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1-4-1989 only. Thus, as far as assessment year 1986-87 was concerned, the income from business had to be computed in accordance with the provisions contained in Sections 30 to 43A only and Section 43B was not applicable during assessment year 1986-87.;

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