Section 43B- No deduction for Deposit In ‘No-Lien/Escrow Account’

Indian Metal and Ferro Alloys Ltd Vs CIT (Orissa High Court) The purpose of Section 43B of the Act was to ensure that a liability could be claimed as deduction only if the Assessee has actually parted with the sum without any recourse to it thereafter. In the present case, the interim stay granted in favour of the Assessee was only to ensure that the disputed amount of electricity duty did not go to the State Government. Short of such ‘actual’ payment, the Assessee was permitted, first by the High Court and then by the Supreme Court, to deposit the disputed amount of duty in a ‘no-lienâ€...