- (1.) THE following two questions of law have been referred by the Tribunal, Delhi Bench "E", New Delhi, for the opinion of this Court relevant to the asst. yr. 1985 -86 : "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing relief in respect of sales -tax payable which amount was paid subsequent to the close of the accounting year and not before the close of the accounting year. 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the subsidy received for generator set is not contribution made by the Government towards the cost of the generator and further whether the Tribunal was right in law in allowing depreciation on generator set at 20 per cent"
(2.) WITH regard to question No. 1 the facts in brief are as follows :
(3.) THE claim of the assessee of sales -tax was disallowed under s. 43B for the asst. yr. 1985 -86. The assessee claimed deduction of Rs. 1,74,400 on account of sales -tax payable which was due for payment and was paid within the due date which due date fell subsequent to the close of the accounting period. The AO disallowed the deduction in view of s. 43B of the IT Act. It is not in dispute that the assessee paid the sales -tax dues within the due date under the Sales -tax Act. The contention of the assessee, which has also been accepted by the Tribunal, is that the payment of sales -tax dues within the due date, though after the close of the accounting year is deductible in the relevant assessment year.;