JUDGMENT

Mrs. Sujata V. Manohar, J.-The two Income-tax References which are before us deal with a common question relating to the interpretation of Section 43B of the Income-tax Act, 1961. The references have been made under Section 256(1) of the Income-tax Act, 1961. Since the same question arises in the two civil appeals also these appeals have been heard along with these references. For the sake of convenience. We are taking the statement of the case in Income-tax Reference No. 2 of 1993.

2. The following question has been referred to us under Section 256(1):-

"Whether on the facts and in the circumstances of the case, the sales-tax collected by the assessee and paid after the end of the relevant previous year but within the time allowed under the relevant sales-tax law is to be disallowed under Section 43B of the Income-tax Act, 1961 while computing the business income of the said previous year?"

The relevant assessment year is 1984-85, the relevant accounting period being the year ending on 30th of June, 1983. The assessee filed the return declaring an income of Rs. 1,91,940/-. The Income-tax Officer, however, disallowed, inter alia, deduction claimed by the assessee of an amo