SENGUPTA, J. - (1.) IN this reference under S. 256(1) of the IT Act, 1961 ('the Act') for the asst. yr. 1984-85 the following question of law has been referred to this Court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the first provision to S. 43B of the IT Act. 1961 introduced by the Finance Act, 1987 w.e.f. 1st April, 1988 would apply to the asst. yr. 1984-85 and in that view deleting the disallowance of Rs.19,893 made under S. 43B of the said Act ?"
(2.) SHORTLY stated, the facts are that the assessee is a limited company. The AO found that the assessee claimed deduction of Rs.34,245 for central sales-tax, professional tax, etc. These amounts were not paid during the year under reference and, consequently, he disallowed the claim of the assessee. The details of the claim are as follows: On appeal, the CIT (A) confirmed the disallowance made by the AO.
(3.) THE counsel for the assessee relying on ITO vs. K.S. Lokhandwala (1989) 32 ITD 305 (Ahd) urged that the payment of Rs.19,893 had been made on or before the due date and, therefore, the claim of the assessee to the extent of Rs.19,893 should be allowed. The Departmental Representative referred to the provisions of S. 43B of the Act (since amended and supported the order of the CIT (A).;