P. B. Majmudar, J. - (1.) This appeal is directed against the Order dated 19.10.2001 passed by the Income Tax Appellate Tribunal, (I.T.A.T.) Panaji Bench, in Income Tax Appeal No. 904/PN/92 in connection with the Assessment year 1989-90. By the impugned order, the I.T.A.T. dismissed the appeal filed by the appellant and confirmed the order passed by the Commissioner of Income-Tax (Appeals) (C.I.T.(A)). This appeal is admitted on the following substantial questions of law : (A) Whether on facts and in the circumstances of the case, the I.T.A.T. was justified in law in deleting the additions in respect of Sales Tax refund to the extent of Rs. 9,00,813/- (B) Whether the findings of the I.T.A.T. that Sales Tax refund should not be assessed as income till the litigation reaches finality is contrary to the provisions of section 43-B of the I.T. Act, 1961, since now deduction is based on actual payment basis and even if the Hon'ble Supreme Court gives decision against the assessee, the deduction would be admissible on actual payment basis
(2.) The respondent-assessee-company is carrying on business of plaster of paris and the said company filed its return on 29.12.1989, declaring its income at Rs. 41,12,150/-. Subsequently, notices were issued under sections 142(1) 143(2) to the assessee. The Assessing Officer, thereafter, by'. his order dated 31.1.1992 made certain additions towards the income expenditure and the Assessing Officer added certain amounts which the assessee had received by way of sales tax refund.
(3.) Being aggrieved by the said order of the Assessing Officer, the respondent-company preferred an appeal before the C.I.T. (A). The C.I.T.(A) allowed the appeal. The C.I.T.(A) came to the conclusion that since the refund of sales tax amount is challenged, the said refund amount cannot be added as the said issue has not become final, espe-cially when the Sales Tax Department had gone in appeal before the Supreme Court. The C.I.T.(A), however, found that the sales tax refund is to be considered as income of the respondent-company. The addition made towards the sales tax refund in the particular assessment year was deleted, particularly, on the ground that the mater was subjudice. The aforesaid order was challenged by the appellant-Department by way of an appeal before the I.T.A.T. The I.T.A.T., after considering the decision given by it in another case, held that since the litigation has not reached finality, the sales tax refund should not be assessed as income till the litigation reaches finality. By holding so, the I.T.A.T. dismissed the appeal, which decision is impugned in this appeal.;