- (1.) ON an application under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for our opinion : "Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting addition made under S. 43B notwithstanding the fact that the assessee did not make the payment of outstanding liability of sales-tax Rs. 97,498, ESI Rs. 640 and PF Rs. 3,025 during the previous year relevant to asst. yr. 1984-85".
(2.) THE assessee is a private limited company which claimed liability of Rs. 97,498 on account of sales-tax, Rs. 640 on account of Employees State Insurance and Rs. 3,025 on account of Employees Provident Fund. Though, the assessee contended before the CIT(A), that the amount was paid after a due date as required under S. 43B of the IT Act, 1961, in appeal, before the CIT (A), CIT(A) has allowed the claim of following decisions (1991) of the Delhi High Court in the case of Sanghi Motors vs. Union of India & Ors. (1991) 91 CTR (Del) 15 : (1991) 187 ITR 703 (Del) the view taken by the CIT(A) has been confirmed by the Tribunal. None appeared for the assessee. Heard learned counsel for the Revenue.
(3.) LEARNED counsel for the Revenue has not pointed out the fact that the amount in question has not been paid within the period permissible in the provisions of the respective Act. If the amount has not been paid in the financial year but before the last date provided in the provisions of their respective Acts, in such cases deduction should be allowed. Now the issue has been concluded by their lordships in Allied Motors (P) Ltd. vs. CIT (1997) 139 CTR (SC) 364 : (1997) 224 ITR 677 (SC) wherein their lordships held that if the amount is paid after accounting year but before due date permissible under the provisions of respective Acts it is deductible. In view of their lordships decision, we find no reason to interfere in the findings arrived at by the Tribunal. In the result, we answer the question referred to us in favour of the assessee and against the Revenue. The reference so made stands disposed of accordingly.;