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2020 (2) TMI 944 - AT - Income TaxAddition made u/s. 43B in respect of Municipal Tax - HELD THAT:- In any case, the assessee was only a collecting agent on behalf of the State and it was the amount which was not collected, which was shown as receivable and also on the other side shown as payable to the State. The liability if any, would arise after the amount is collected and that also of the State. In such circumstances, the provision of section 43B of the Act could not be applied and the amount could not be disallowed in the hands of the assessee. Similar accounting has been carried out by the assessee in its books of accounts from Assessment Year 1999-2000 and no disallowance has been made in any of the year. Hon’ble Calcutta High Court in the case of CESC Ltd. vs CIT [2015 (5) TMI 795 - CALCUTTA HIGH COURT] has held that where the assessee merely acts as Collecting agent for the State Government and pays the same to the State Government on collection, then, the licencee merely acts as a conduit and the Electricity Duty was not chargeable to the licencee. It was concluded by holding that Electricity Duty not being a sum payable by the assessee as a primary liability by way of tax, duty, cess or fee, then provisions of section 43B of the Act were not attracted to the licencee/assessee in respect of the Electricity Duty collected by it for being passed on to the State Government. Addition on account of cost variance reserve - CIT- A deleted the addition - HELD THAT:- On a careful consideration of this issue we are of the considered opinion that inasmuch as there is no dispute in the current year and subsequent year, the rate of tax remained the same and the dispute raised by the Revenue is entirely academic or it may have a minor tax effect. By respectfully following the decision of Hon’ble Apex Court in the case of Excel Industries Ltd. [2013 (10) TMI 324 - SUPREME COURT] we endorse the view taken by the ld. CIT(A) and hold that this is a revenue neutral transaction. We, therefore, affirm the finding of the ld. CIT(A) on this issue. Addition of provision of surcharge levied but not realized - CIT-A deleted the addition - HELD THAT:- CIT(A) followed the binding precedent of Hon’ble High Court in own case [2014 (11) TMI 58 - PUNJAB & HARYANA HIGH COURT] it cannot be said that the finding of the CIT(A) is either erroneous or perverse. We, therefore, find this ground of appeal of Revenue as devoid of merit and the same is liable to be dismissed. Allowability of prior period expenses - As per CIT(A), the claim of assessee on account of Pay anomaly of employee crystallized during the year should have been accepted and he, therefore, granted relief to the assessee - HELD THAT:- On a perusal of the record and the order [2019 (12) TMI 1233 - ITAT DELHI] or assessment year 2006-07 in assessee’s own case, we hold that the Tribunal also endorsed the view taken by ld. CIT(A) in earlier years that the liability crystallized during the year has to be allowed. We do not find anything improper in the approach of the CIT(A) to allow the expenses in respect of which the liability crystallized during the year. Hence, ground No. 3 of Revenue’s appeal is dismissed. Loss due to flood, cyclone and fire - Allowable revenue expenses - HELD THAT:- On a perusal of the order for assessment year 2006-07 in assessee’s own case, we find that a co-ordinate Bench of this Tribunal was of the view that the nature of expenditure is the determining factor and not the nomenclature and having regard to the expenditure, this expenditure needs to be considered as Revenue expenditure. Respectfully following the said view taken in assessee’s own case, we dismiss this ground of appeal. TDS u/s 194J - Payment of wheeling & SLDC charges - HELD THAT:- CIT(A) considered the contentions of the assessee and decided the issue in the light of decision of the Tribunal for assessment year 2006-07 to 2008-09. Revenue does not dispute the fact that this issue has been a recurrent issue for last several years and consistent view has been taken by the Tribunal for assessment year 2008-09 to 2009-10 and as on date, there is no contrary view from the higher forums. We, therefore, while respectfully following the consistent view taken by the Tribunal in assessee’s own case under identical circumstances in earlier years, hold that the CIT(A) is right in deleting the addition and the ground of Revenue’s appeal has no merits
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