2002 (5) TMI 21

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..... inion of this court on the following question: "Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal was legally justified in: (i) holding that the royalty does not partake the character of 'tax', 'duty', 'cess' or 'fee' for the purpose of applicability of the provisions of section 43B of the Income-tax Act?" The facts giving rise to the instant referen .....

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..... hat the royalty is paid as consideration for goods or services supplied. The Tribunal accordingly allowed the appeal and directed the Assessing Officer to allow the liability in question for the assessment year under consideration. It is now no more res integra that the royalty is a tax and as such section 43B is applicable to unpaid liability towards payment of royalty. Reference may made to the .....

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..... lal Dubey [1998] 232 ITR 246. It has been further followed by the apex court in State of M. P. v. Mahalaxmi Fabric Mills Ltd., AIR 1995 SC 2213. In our opinion, the view taken by the Tribunal is not correct being contrary to law settled by the apex court. In view of the aforesaid discussion, we answer the reference in favour of the Revenue and against the assessee.
Case laws, Decisions, Judg .....

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