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2015 (5) TMI 397 - SC - Income TaxDisallowance u/s 43B - vend fee outstanding as a liability payable to the Government of Kerala as on the last day of the accounting year - ITAT upholding deletion of disallownce - Held that:- Reading of the document, namely, a Government of Kerala order dated 28.04.1988 it is clear that the State compulsorily takes from the three mills, a vend fee for the purpose of conferring a special benefit on the said three mills, viz., the repair and replacement of existing machinery and equipment. On facts in the present case, it is clear that the amendment made to Section 43B is attracted. Even if the vend fee that is paid by the respondent to the State does not directly fall within the expression 'fee' contained in Section 43B(a), it would be a 'fee' by 'whatever name called', that is even if the vend fee is called 'privilege' as has been held by the High Court in the judgment under appeal. This being the case, we find that question which was answered in favour of the assessee and against the Revenue by the High Court in Commissioner Of Income-Tax Versus Sri Balaji And Co. [2000 (1) TMI 17 - KARNATAKA High Court ] was not answered correctly. We therefore, set aside the aforesaid judgment and allow the present appeal in favour of the Revenue. In case the respondent has actually paid the aforesaid fee in a previous year relevant to some other assessment year, he will be entitled to claim the benefit of Section 43B for that particular assessment year in accordance with law. - Decided in favour of revenue.
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