C.S.P. Singh, J.

1. THE Income-tax Appellate Tribunal, Delhi Bench "A", on the directions of this court, has referred the following question for our opinion :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the amount of Rs. 11,484 paid as sales tax by the assessee is an admissible deduction in computing the assessee's income for the assessment year 1962-63 ?"

2. THE assessee is a registered firm carrying on business in cloth at Bareilly. Up to the assessment year 1960-61, the assessment was completed in the status of Hindu undivided family, which consisted of seven members including its karta, Banwari Lal. On March 31, 1960, there was a partial partition of the Hindu undivided family in regard to the business, which was taken over by three members only out of the seven, viz., Banwari Lal, karta, Madan Mohan and Ghan Shyam. It carried on the business in the status of a firm. The balance-sheet of the Hindu undivided family as drawn on March 31, 1960, consisted of a number of assets and liabilities including a credit balance of Rs. 25,230 in respect of provision for sales tax liability of the Hindu undivided