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2008 (2) TMI 571 - HC - Income TaxBusiness Expenditure- The Assessing Officer made adjustments and issued an intimation under section 143(1) (a) of the Act in relation to various items disallowable under section 43B of the Act, one of them being Rs. 41,65,12,181, being the amount of electricity duty payable to the State Government by the assessee on sale of electric power. The assessee moved an application under section 154 of the Act on September 30, 1992, relying on a letter issued by the Under Secretary to the Government of India, Energy and Petrochemicals Department to contend that the electricity duty payable had been adjusted against other amounts receivable from the Government and, hence, the adjustment made under section 143(1)(a) of the Act and the levy of additional tax under section143(1A) of the Act was not warranted. The assessee carried the matter in appeal before the Commissioner of Income-tax (Appeals) but did not succeed. Tribunal passed the order in favour of assessee. Held that- On the basis of the decision of Ahmedabad Electricity Company Ltd. v ITO where in it is held that electricity duty on sale of electricity has to be considered as an inadmissible item under section 43B of the Act, thus it is in favour of revenue and against the assessee.
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