- (1.) The question involved in this reference relates to the allowability of the deduction of Rs. 1,40,86,821/- claimed by the appellant for the assessment year 1986-87 under Section 43-B of the Income Tax Act.
(2.) The Income Tax Officer had disallowed this deduction for the year 1986-87 but had, allowed it for the subsequent assessment year 1987-88. Similarly in respect of assessment year 1987-88, the Income Tax Officer had disallowed another amount of Rs. 1,25,30,853/- claimed under Section 43-B but in appeal the Income Tax Appellate Tribunal has allowed this deduction. The effect of the order of the Income Tax Appellate Tribunal is that in respect of the assessment year 1987-88 the appellant has got a deduction of Rs. 1,40,86,821, which was allowed by the Income Tax Officer, plus further deduction of Rs. 1,25,30,853/- as a result of the order of the Income Tax Appellate Tribunal.
(3.) In view of the decision of this Court in Allied Motors Private Limited v. Commissioner of Income Tax. JT 1997 (3) SC 418 = [224 11 R 677] in respect of the amount of Rs. 1,40,86,821/- the deduction was allowable for the assessment year 1986-87, as claimed by the appellant before the Income Tax Officer. In this view of the matter the question of law which was referred by the Tribunal has to be answered in favour of the appellant which would mean that for the assessment year 1986-87 deduction under Section 43-B would be allowed for the sum of Rs. 1,40 86 821.;