Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 752 - AT - Income TaxDisallowance under section 43B - electricity duty payable under section 3(1) of the Electricity Duty Act, 1963 and supply surcharge payable to the Government - CIT(A) deleted the addition - Held that:- This issue was decided by the jurisdictional High Court in the assessee's own case reported in Kerala State Electricity Board v. Dy. CIT [2010 (11) TMI 127 - Kerala High Court] the provisions of section 43B is applicable to the electricity duty payable to the Government. Accordingly, the disallowance made by the Assessing Officer is justified to the extent towards electricity duty payable to the Government and to that extent the order of the Commissioner of Income-tax (Appeals) is reversed and that of the Assessing Officer restores. With regard to electricity surcharge collected from the consumers, the same is levied in terms of Kerala State Electricity Surcharge (Levy and Collection) Act, 1989, which provides for levy and collection of surcharge on high tension and extra high tension supplies of energy by the Kerala State Electricity Board. The surcharge is collected from the special category of consumers in terms of section 3 of the above Act and stands on the same footing as under section 4(1) of the Kerala State Electricity Duty Act, 1963. Therefore, the provisions of section 43B is not applicable to the assessee's case in terms of the order of the jurisdictional High Court cited supra. Being so, in our opinion, the disallowance of electricity supply surcharge is not warranted and accordingly, the order of the CIT(Appeals) on the issue of deletion of electricity surcharge is confirmed. - Decided partly in favour of assessee. Application of section 115JB so as to tax book profit - Held that:- The Electricity Board or bodies similar to it, which are totally owned by the Government, either State or Central, have no share holders. Profit, if at all, made would be for the benefit of the entire body politic of the State. Therefore, the enquiry as to the mischief sought to be remedied by the amendment becomes irrelevant. There fore, the fiction fixed under section 115JB cannot be pressed into service against the Electricity Board while making the assessment of the tax payable under the Income-tax Act - Decided against revenue.
|