IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.R. No.90 of 1996 Date of decision: 19.09.2006 C.I.T. (C), Ludhiana ---Appellant Vs. Sukhchain & Co., Chandigarh. -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MR JUSTICE RAJESH BINDAL Present: Mr. S.K. Garg Narwana, Advocate for the revenue. ----- ORDER: Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated 11.07.1994 in I.T.A. No.961/Chandi/89 in respect of assessment year 1984-85:- “Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction of payment of sales-tax under the first proviso to section 43B of the Income-tax Act, after holding that the said proviso inserted w.e.f. 1.4.1988 had retrospective application? We find that the issue is covered against the revenue and in favour of the assessee by the judgment of Hon’ble Supreme Court in Allied Motors (P) Limited v. Commissioner of Income Tax 1997 (224) ITR 677. Accordingly, the question is answered against the revenue and in favour of the assessee. ( ADARSH KUMAR GOEL ) JUDGE September 19, 2006 ( RAJESH BINDAL ) ashwani JUDGE