Honble BALIA, J.–Income Tax Appellate Tribunal Jaipur Bench, Jaipur, at the instance of the Commissioner of Income Tax Jaipur, has referred the following question of law arising out of ITA No. 719/JP/88 relating to the assessment year 1985-86:

``Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in setting aside the addition of Rs. 37,826/- aside the addition of Rs. 37,826/- made u/S. 43B with the direction that if the amount of sales tax is paid within the time allowed under the Sales Tax Law, although after the close of the year, it shall be allowed as deduction?

(2). The facts relevant for determining the aforesaid question are that the assessee has claimed deduction on account of the liability to pay sales tax amounting to Rs. 37,826/- which had not been actually paid during the previous year relevant to the assessment year in question. The assessee has claimed that as per the relevant Sales Tax Law, the assessee has incurred the liability for the previous year and the payment of said sum was also made within the time allowed for such payment under the provisions of Sales Tax Act before the submission of return in time. He, according

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