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| The Tax Publishers2020 TaxPub(DT) 4961 (Ctk-Trib) INCOME TAX ACT, 1961
Section 40(a)(iib)
Decision of Tribunal in assessee's own case for assessment year 2014-15 in ITA No. 140/CTR/2018 dated 4-10-2019 wherein it was held that Year under consideration being 2014-15, provision of section 40(a)(iib) was applicable and disallowance made by AO of license fee paid by State Government Undertaking was justified, was applicable for assessment year 2015-16 as there was no change in the facts and issue involved.
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Business disallowance under section 40(a)(iib) - Royalty, service fee, etc., levied on State Govt. Undertaking - Assessee claimed deduction of licence fee paid to State Govt. -
Assessee-company was a State Government Undertaking under the Ministry of Excise, Govt. of Odisha. It claimed deduction of licence fee paid to the State Govt. AO disallowed deduction in view of section 40(a)(iib). Held: Clause (iib) to section 40(a) was inserted by the Finance Act, 2013 with effect from 1-4-2014 and the said section specifically disallows any amount paid by way of royalty, license fee, service fee, privilege fee, service charge or any other fee or charge, by whatever name called which is levied exclusively on or which is appropriated directly or indirectly, from a State Government Undertaking by a State Government. Decision of Tribunal in assessee's own case for assessment year 2014-15 in ITA No. 140/CTR/2018 dated 4-10-2019 wherein it was held that Year under consideration being 2014-15, provision of section 40(a)(iib) was applicable and disallowance made by AO was justified, was applicable for assessment year 2015-16 as there was no change in the facts and issue involved.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2015-16
IN THE ITAT, CUTTACK BENCH
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