Gauhati High Court
Commissioner Of Income-Tax vs Bharat Bamboo And Timber Suppliers on 10 January, 1996
Equivalent citations: [1996]219ITR212(GAUHATI)
Author: S.L. Saraf
Bench: S.L. Saraf
JUDGMENT D.N. Baruah, J.
1. The following question has been referred by the Tribunal at the instance of the Revenue under Section 256(1) of the Income-tax Act, 1961 :
"Whether, on the facts and in the circumstances of the case and in view of the Explanation 2 to Section 43B as inserted by the Finance Act, 1989, giving retrospective effect from April 1, 1984, the Tribunal has not erred in law in directing the Assessing Officer to allow relief to the extent of the sales tax amount paid even after the close of the accounting period but before the due date of filing the return of income under Section 139(1) of the Income-tax Act, 1961 ?"
2. We have heard Mr. G.K. Joshi, senior standing counsel for the Income-tax Department, and Dr. A.K. Saraf, counsel for the assessee. Dr. A, K, Saraf submits that the question has been answered by different High Courts, namely, the Andhra Pradesh High Court in Srikakolhi Subba Rao and Co. v. Union of India [1988] 173 ITR 708, the Patna High Court, in Jamshedpur Motor Accessories Stores v. Union of India [1991] 189 ITR 70, the Kerala High Court in CIT v. P. Janardhanan Pillai [1991] 189 ITR 165, the Orissa High Court in CIT v. Pyarilal Kasam Manji and Co. [1992] 198 ITR 110, the Calcutta High Court in CIT v. Sri Jagannath Steel Corporation [1991] 191 ITR 676, the Gujarat High Court in CIT v. Chandulal Venichand [1994] 209 ITR 7, the Karnataka High Court in Chief Commissioner (Admn.) v. Sanjay Saks Syndicate [1992] 197 ITR 255 and the Kerala High Court, in CIT v. Govindaraja Reddiar [1991] 187 ITR 417. All these High. Courts answered the question in favour of the assessee and against the Department. However, the Delhi High Court answered the question against the assessee in Sanghi Motors v. Union of India [1991] 187 ITR 703 and in Escorts Ltd. v. Union of India [1991] 189 ITR 81 (Delhi).
3. Following the majority decisions of the High Courts staled above, we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.
4. A copy of this judgment under the signature of the Registrar and the seal of the High Court shall be transmitted to the Income-tax Appellate Tribunal. In the facts and circumstances of the case, there will be no order as to costs.