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2022 (11) TMI 872 - AT - Income TaxDisallowance u/s 43B - electricity duty payable to State Govt - non-payment of electricity duty before the due date of filing return of income - HELD THAT:- As finding of ld. CIT(A) placing reliance on the decision of CESC Ltd[2015 (5) TMI 795 - CALCUTTA HIGH COURT] stands uncontroverted by the ld. D/R and we, therefore, respectfully following the ratio laid down since the alleged amount is not a sum payable by the assessee as a primary liability by way of tax, duty, cess or fee but the said amount i.e. the electricity duty is collected by the assessee company from the consumers to be passed on to the State Govt. and the said amount is not claimed as an expenditure in the profit and loss account. We, therefore, fail to find any infirmity in the finding of the ld. CIT(A) and, therefore, dismiss ground nos. 1, 2 & 3 raised by the Revenue. TDS u/s 194A - non-deduction of tax at source on the interest paid to consumers on security deposit - HELD THAT:- As we note that there are large number of consumers and it is difficult to collect data of each and every consumer (20 lakh) which are maintained manually in the registers at each of the locations of the company and also the average interest amount is not exceeding Rs. 84/-, necessary efforts have already been made by the assessee company filing complete details of the consumers to which interest was paid above the prescribed limit and due tax deducted at source, restoring the issue to the ld. AO for again calling for the records of each and every consumer and then find out the correct amount eligible for deduction of tax at source will unnecessarily stretch the long drawn proceedings which pertains to AY 2012-13 and even after carrying out such exercises it is not certain that the necessary results would be obtained. Disallowance u/s. 40(a)(ia) of the Act is not called for on the alleged amount as the assessee has filed the details which it could possibly gather and the Revenue authorities have no material with them to make the disallowance except for non-filing of details by the assessee and ignoring the fact that average interest is merely Rs. 84/- per consumer and there will be large number of cases where interest amount paid on the security deposit may have been much below the prescribed limit for non-deduction of tax at source. However, since the interest amount of Rs. 48,60,850/- has already been subjected to TDS, the remaining amount of alleged disallowance will only be Rs. 16,13,39,150/- and we allow the said amount as an interest expenditure not calling for disallowance u/s. 40(a)(ia) - Decided in favour of assessee.
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