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2020 (3) TMI 638 - HC - Income TaxValidity of Section 40(a)(iib) - Scope of the term "Charges" - Whether Value Added Tax (VAT) would be falling within the definition of a “charge” - petitioner Corporation contending that the amount which is deductible in computing the income chargeable in terms of the Income Tax Act is not being allowed under the garb of the aforesaid provision and for which learned Advocate General appearing for the petitioner / TASMAC has invited the attention of the Court to the order passed by the Assessing Authority dated 30.12.2019 - HELD THAT:- It is in order to protect the tax base of the State Government undertakings that the provision came to be introduced. She has further narrated as to the manner in which the State Government by issuing retrospective Government Orders, had appropriated the amount as a privilege fee and therefore, in such circumstances, it had become imperative to introduce the aforesaid provision, which is ultimately to the benefit of the State Government undertakings and also ensures the correct appropriation of revenue to the Central Government. Having considered the submissions raised, the issue of raising a challenge to the vires of the provision at this stage, need not be entertained by us, as the matter is still sub judice before the Income Tax Authority even though, it is open to the aggrieved party to question the same at the appropriate moment. We are not inclined to entertain the writ petition at this stage without prejudice to the rights of the aggrieved parties to approach the appropriate forum in accordance with law in the event the occasion so finally arises.
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