2000 (9) TMI 995 - SC - Income Tax

Whether the Tribunal was right in law to hold that the provisions of section 43B were not applicable to the unpaid liability towards royalty payment since royalty was neither tax nor duty - HC answered the question in the negative and against the assessee - Constitution Bench judgment in India Cement Ltd. v. State of Tamil Nadu lays down the law namely royalty is tax and it is a tax for all purposes including section 43B- hence judgment of the HC is affirmed and the appeal is dismissed.

Summary

The Supreme Court affirmed that royalty is considered a tax for all purposes, including section 43B of the Income-tax Act, 1961. The appeal was dismissed, and no costs were awarded.