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| The Tax Publishers2020 TaxPub(DT) 1651 (Mad-HC) : (2020) 317 CTR 0965 INCOME TAX ACT, 1961
Section 40(a)(iib)
Where petitioner challenged validity of section 40(a)(iib) contending that VAT doesn't fall within definition of a 'charge' as contained in section 40(a)(iib), writ petition was not entertained holding that issue of raising a challenge to the vires of provision, need not be entertained, as matter was sub judice before IT Authority.
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Business disallowance under section 40(a)(iib) - VAT whether falls within the definition of a 'charge' - -
Petitioner challenged validity of section 40(a)(iib) contending that amount which is deductible in computing income chargeable in terms of the IT Act is not being allowed under the garb of the aforesaid provision, It contended that Income Tax Authority has erroneously construed the Value Added Tax (VAT) to be falling within the definition of a 'charge' as contained in section 40(a)(iib).Held: It is in order to protect the tax base of the State Government undertakings that the provision came to be introduced. Having considered submissions raised, issue of raising a challenge to the vires of provision, need not be entertained, as matter was sub judice before IT Authority. Even though, it was open to aggrieved party to question the same at the appropriate moment.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
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