Ajit K. Sengupta, J.

1. IN this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1984-85, the following question of law has been referred to this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that, if the amounts were not statutorily payable in the accounting year, Section 43B of the Income-tax Act, 1961, will not be applicable in this case?"

2. SHORTLY stated, the facts are that the assessee is a resident company and the assessment year involved is 1984-85 for which the previous year ended on September 30, 1983. The Assessing Officer, in the course of assessment proceedings, found that in the balance-sheet there were outstanding liabilities as under :

(i) Central sales tax 16,060

(ii) U.P. sales tax 21,335

(iii) Provident fund 2,885

The Income-tax Officer disallowed the above liabilities under Section 43B of the Income-tax Act, 1961.

3. THE assessee challenged the above disallowance before the Commissioner of Income-tax (Appeals) but remained unsuccessful. THE Commissioner of Income-tax (Appeals) held that the provisions of Section 43B were rightly applied by the Assessing Of