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2018 (7) TMI 135 - HC - Income TaxDisallowance u/s 40(a)(iib) - disallowance was made to deductions claimed as gallonage fee, licence fee, shop rental (kist) and surcharge on sales tax - scope of the new provision introduced w.e.f. AY 2015-16 - exemption towards payment of licenece fee and surcharge on liquor (vendors) to the State government - Held that:- Provision was one introduced in the subject year and the deductions were allowed in all the earlier years. The income so generated by the Corporation also goes to the exchequer of the State, which definitely is used for welfare purposes. Yet again we are of the view that there is a debatable issue, which has to be considered, especially on the new provision introduced in the Income Tax Act. We hence direct the Commissioner (Appeals) to consider the appeal itself and in the meanwhile keep recovery in abeyance. We make it clear that the observations by this Court or the learned Single Judge need not regulate the consideration by the Appellate Authority. The observations, if at all made are only in the nature of prima facie ones to invoke the extra-ordinary jurisdiction under Article 226 of the Constitution. Writ Appeal would stand allowed.
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