The Tax Publishers2020 TaxPub(DT) 4668 (Del-Trib)

INCOME TAX ACT, 1961

Section 43B

Assessee collected electricity duty from customer and paid to the U. P. Government and amount of electricity duty was deducted by U. P. Government from subsidy given by it. Thus, electricity duty was collected by assessee on behalf of Government of U. P. and provisions of section 43B were not applicable to assessee and, therefore, no disallowance could be made on account of unpaid electricity duty.

Business disallowance under section 43B - Deduction on actual payment - Unpaid electricity duty - Electricity duty collected by assessee on behalf of Government

Assessee was engaged in power distribution. AO made disallowance under section 43B on account of unpaid electricity duty. Held: Electricity duty was tax on electricity consumption imposed on the consumer based upon their consumption. Assessee collected the duty from customer and paid to the U. P. Government and amount of electricity duty was deducted by U. P. Government from subsidy given by it. Thus, electricity duty was collected by assessee on behalf of Government of U. P. and provisions of section 43B were not applicable to assessee and, therefore, no disallowance could be made.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15


INCOME TAX ACT, 1961

Section 40(a)(ia)

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