SENGUPTA, J. - (1.) IN this reference under S. 256(1) of the IT Act, 1961 ('the Act') for the asst. yr. 1984-85 the three questions of law have been referred to this Court. We have reframed the third question. The questions are as follows: "1. Whether, on the facts and in the circumstances of the case and on a correct interpretation of the first proviso to S. 43B of the IT Act, 1961 introduced by the Finance Act, 1987 w.e.f. 1st April, 1988 the Tribunal was justified in law in holding that the said first proviso would be applicable for the asst. yr. 1984-85 also? 2. Whether, on the facts and in the circumstances of the case and particularly in view of the Expln. 2 below S. 43B of the IT Act, 1961, the Tribunal was justified in law in holding that the claim of deduction of the contribution to the provident fund, etc., which were not paid within the previous year but were paid within the time allowed under the relevant laws, cannot be disallowed under s. 43B of the IT Act, 1961? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in directing the AO to re-examine and decide the issue of disallowance under S. 43B of the IT Act. 1961?" Shortly stated, the facts are as under:
(2.) THE assessee, Indian Chain (P)Ltd. is a private limited company and the assessment year involved is 1984-85. In the course of assessment proceedings, the AO examined the P&L a/c of the assessee and found that the assessee had claimed deduction for Rs.70,006, the details of which are as hereunder: The AO applied the provisions of S. 43B of the Act and disallowed the same.
(3.) THE assessee appealed to the CIT (A) and contended that the claim of the assessee should have been allowed as the assessee had paid within the statutory period. The CIT (A) accepted the arguments of the assessee for turnover tax for the asst. yr. 1982-83 and allowed a relief of Rs.49,699 being turnover tax for 1982-83 and disallowed the balance as was disallowed by the AO. Rs. (i) Provident Fund for June 1989 (Employer's) 11,515 (ii) Administrative charges on P.F. 532 (iii) Insurance Fund 719 (iv) Administrative charges on insurance Fund 144 (v) E.S.I. Contribution -May and June 1983 3,619 (Employer's) 3,520 (vi) Labour Welfare Fund contribution (Employer's) 258 (viii) Turnover tax for 1982-83 49,699 70,006 Both the assessee and the Revenue went to the Tribunal, Tribunal disposed of the appeals, inter alia, observing as follows: However, in the present case, the questions whether the payments shown as outstanding related to last quarter and were not paid as per relevant statutory provision and before the due date for furnishing the return of income is required to be examined. Therefore, we set aside the orders of the lower authorities on this point and direct the AO to re-examine the case in the light of our observations made above guided by the principles laid down in the case of K.S. Lokhandwala (supra). The matter is, accordingly, restored to the file of the AO." ;