Whirlpool Of India Ltd. vs Commissioner Of Income-Tax

The Supreme Court ruled that the deduction of Rs. 1,40,86,821/- under Section 43B of the Income Tax Act for the assessment year 1986-87 is allowable, following the precedent set in Allied Motors Private Limited v. Commissioner of Income Tax. The Court directed that the Income Tax Officer must pass a fresh assessment order to reflect this deduction for 1986-87, while disallowing it for 1987-88, ensuring no technical difficulties arise. The question of law referred by the Tribunal was answered in favor of the appellant, with no costs awarded.