Deduction under s 43B

The assessee is entitled to a deduction under s 43B even in the absence of supporting evidence for payment, on the basis of the tax audit report, as held by DelTrib in ACIT v Indian Farmer Fertilisers Coop Ltd — In favour of: The assessee; ITA Nos 3350/Del/2009 and 1194/Del/2011: (AYs 2005–2006 and 2006–2007).

Business expenditure — The assessee is entitled to a deduction on the amount contributed to the Coop Education Fund under s 37.

Principle of consistency — Where, one way or the other, the fundamental aspect permeating through the different assessment years has been found as a fact and the parties have allowed that position to be sustained by not challenging the order, it would not be appropriate to allow the position to be changed in a subsequent year.

Decided on: 31 May 2011.