IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.R. No.381 of 1995 Date of decision: 27.10.2006 The Commissioner of Income Tax (Central), Ludhiana. ---Applicant Vs. M/s Rita Mechanical Works, Ludhiana. -----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 11.01.1995 in I.T.A. No.157/Chandi/90 in respect of assessment year 1985-86:- “Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in allowing the relief to the assessee holding that the first proviso to Section 43B inserted by the Finance Act, 1987 w.e.f. 1.4.1988 has 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. Following the above judgment of the Hon’ble Supreme Court, we have decided the issue against the revenue and in favour of the assessee vide our order dated 5.9.2006 in ITR No.94 of 1996, The Commissioner of Income tax (C), Ludhiana v. M/s Avery Cycle Inds. Pvt. Limited, Ludhiana.. Accordingly, the question is answered against the revenue and in favour of the assessee. ( ADARSH KUMAR GOEL ) JUDGE October 27, 2006 ( RAJESH BINDAL ) ashwani JUDGE