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2019 (4) TMI 685 - HC - Income TaxAddition u/s 43B - enhanced licence fee for land payable to railway - “duty, cess or fee” payable “under law for the time being in force” or any payments made by virtue of Section 43B(1)(b) - crystallization of liability - additional ground - applicability of insertion of clause (g) in Section 43B(1) w.e.f. 01.04.2017 - HELD THAT:- This Court is of the opinion that even otherwise, having regard to the facts of this case, the arguments with respect to the applicability of Section 43B is untenable Assessee follows a mercantile system of accounting where such entries are made on contingent basis. This consistent practice was recognized and the only question was whether the existence of a dispute in any manner implicated the accountancy practices adopted by the asseessees in treating an unascertained liability to unquantified liability. Furthermore, Section 43B, either in Clauses (a) and (b) of sub-section (1), do not in the opinion of this court, cover the kind of licence fee that is under consideration. The reference to “fee” has to be always read along with the expression “law in force”. The documents placed on record – even along with the additional grounds, make it clear that the transactions between the parties was plain and simple, a commercial one, while the land was allotted for a certain licence fee. The central issue in dispute was a retrospective increase in licence fee and claim for damages. The assessee has relied on notes of clauses to the bill which interprets Section 43B(1)(g). It states that this amendment takes effect from 01.04.2017 and would accordingly apply to the assessment year 2017-18 and the subsequent assessment years. Thus, it is clear beyond any shade of doubt that notions of clarificatory amendment, etc. would not be applicable herein. - Decided against revenue.
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