R.K.AGRAWAL, J. - (1.) THE Tribunal, Delhi has referred the following question of law under s. 256(2) 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 and legally correct in holding that the sales -tax payable relating to the year under appeal paid in subsequent year within the statutory time permitted by the relevant Sales -tax Act would qualify for deduction in computing the taxable income for asst. yr. 1984 -85 without 1984 -
(2.) THE reference relates to the asst. yr. 1984 -85.
(3.) BRIEFLY stated, the facts giving rise to the present reference are as follows : The respondent is a private limited company. In the balance sheet for the previous year relevant to the assessment year in question, a liability of Rs. 38,903 representing the sales -tax payable was shown. The accounting year of the amount by invoking the provisions of s. 43B of the Act. Feeling aggrieved, the respondent preferred an appeal before the CIT(A) who upheld the claim of the respondent on the ground that disallowance under s. 43B of the Act could be made only to the extent of deductions claimed by the assessee and since the assessee had not made any claim for deduction in regard to the sales -tax payable, the same could not have been added as income of the assessee, which order has been upheld by the Tribunal on the ground that so long as the sales -tax which has been collected and paid within the statutory period allowed by the Sales -tax Act, which period though might fall beyond the accounting period, the assessee may be allowed deductions under s. 43B of the Act. We have heard Sri A.N. Mahajan, learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent -assessee.;