- (1.) ON an application filed under section 256(1) of the Income Tax Act, 1961, the Tribunal has referred the following questions for the opinion of this court : 'Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in taking the view that an amount of Rs. 503 being sales -tax liability and an amount of Rs. 71,099 being provident fund liability which had not been paid by the assessee within the previous year relevant for the assessment year 1986 -87 but which had been paid within the time allowed under the sales -tax law and the provident. find law respectively, should not have been disallowed under section 43B of the Income Tax Act?' 'Whether, on the facts and in the circumstances of the case, the Tribunal was justified in taking the view that an amount of Rs. 11,770 incurred on stamps and an amount of Rs. 87,089 paid to the bank as guarantee fee for fee for obtaining loan from IDBI for purchase of new machinery should be allowed as revenue expenditure when the assessee had already a running business and the assets, for purchasing which the loan was procured, were purchased for carrying on assessee's business ?'
(2.) THE assessee -firm has been carrying on the business of owning. stone mines and extracting stones therefrom and selling those stones. During the course of assessment, assessing officer had disallowed the amount of Rs. 503 by invoking the provisions of section 43B, as the amount has not been paid within the previous year relevant for assessment year 1986 -87. Learned counsel for the revenue fairly admits that now the issue is covered by the decision of Supreme Court in the case of Allied Motors (P) Ltd. v. CIT : [1997]224ITR677(SC) .
(3.) FOLLOWING the view taken by their Lordships, we find no infirmity in the view taken in respect of allowance of tax under section 43B of the Act.;