| Case ID |
0aab4419-d09c-4393-925e-424c19540767 |
| Body |
View case body. Login to View |
| Case Number |
Income-tax References Nos. 211 to 213 of 1987 |
| Decision Date |
Sep 17, 1990 |
| Hearing Date |
|
| Decision |
The Kerala High Court addressed the applicability of section 43-B of the Income Tax Act, 1961, in relation to unpaid sales tax collected by assessees during the assessment year 1984-85. The court found that the amounts collected as sales tax were not payable until a later date, and thus, the assessing authority's interpretation that such sums should be treated as income was incorrect. The court emphasized that only actual payments made towards tax collected could be allowed as deductions. The court remanded the cases back to the Income-tax Appellate Tribunal for a fresh assessment in accordance with the amended provisions of section 43-B, which took effect from April 1, 1984. The decision highlighted the importance of understanding the timing of tax liabilities and the necessity for compliance with statutory provisions regarding tax payments. |
| Summary |
In the notable case of Income-tax References Nos. 211 to 213 of 1987, decided by the Kerala High Court, the court examined the implications of the Income Tax Act, 1961, specifically section 43-B, concerning the treatment of unpaid sales tax collected by various firms during the financial year leading up to the assessment year 1984-85. The matter arose when the tax collected in the last month of the accounting period was not paid to the government by the end of the period. The court elucidated that, according to the amendments made to section 43-B, only taxes that have been actually paid could be deducted while calculating taxable income. This case is pivotal as it underscores the necessity for taxpayers to be aware of their payment obligations and the timing of such payments to avoid misclassification of income. The court's ruling necessitated a review of previous decisions by the Income-tax Appellate Tribunal, emphasizing the need for adherence to updated legal provisions and ensuring clarity in tax obligations. The court directed that the appeals be considered afresh, taking into account the retrospective effect of the amendments to the law. This case serves as a critical reference for understanding tax liabilities and the legal framework surrounding tax deductions in India. |
| Court |
Kerala High Court
|
| Entities Involved |
Not available
|
| Judges |
K.S. Paripoornan,
DJ Jagannadha Raju
|
| Lawyers |
P.K. Ravindranatha Menon, Senior Advocate,
N.R.K. Nair,
P. Balachandran
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
GOVINDARAJA REDDIAR
|
| Citations |
1992 SLD 147,
1992 PTD 926,
(1991) 187 ITR 417
|
| Other Citations |
Srikakollu Subba Rao and Co. v. Union of India (1988) 173 ITR 708 (AP)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
43B
|