- (1.) THE Tribunal, Allahabad, has referred the following question of law under s. 256(1) of the IT Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law confirming the orders of the CIT(A) passed for the asst. yrs. 1984 -85 and 1985 -86 deleting the addition made by the AO under s. 43B of the IT Act, 1961 -
(2.) THE present reference relates to the asst. yrs. 1984 -85 and 1985 -86.
(3.) BRIEFLY stated the facts giving rise to the present reference are as follows : The respondent is a firm, which has been assessed to income -tax during the assessment years in question in the status 42,980 in the sales -tax account on the last day of the accounting year. The ITO added the aforesaid amount under s. 43B of the Act on the ground that the amount representing the sales -tax collected by the respondent from its customers had not been paid over to the State Government within the previous year relevant to the assessment years in question. Feeling aggrieved the respondent preferred separate appeal before the CIT(A). The CIT(A) has found that even if the amounts which were standing as credit balance in the sales -tax account at the end of the accounting period they were payment of sales -tax dues so collected was in the next month, the respondent having paid the amount within the specified period was entitled for deduction and no addition was called for. The order of the CIT(A) has been upheld by the Tribunal. We have heard Sri A.N. Mahajan, learned standing counsel for the Revenue and Sri Shakeel Ahmad, learned counsel for the respondent.;