TMI Blog2002 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... e' for the purpose of applicability of the provisions of section 43B of the Income-tax Act?" - we answer the reference in favour of the Revenue and against the assessee. - - - - - Dated:- 10-5-2002 - Judge(s) : N. N. MATHUR., D. N. JOSHI. JUDGMENT The Income-tax Appellate Tribunal, Jaipur, has made a reference under section 256(1) of the Income-tax Act, 1961, seeking opinion of this court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act. The order of the Assessing Officer was confirmed by the Commissioner of Income-tax (Appeals). However, the Tribunal held that the tax or duty or cess or fee in the context of section 43B is a compulsory exaction of money by public authority for public purposes enforceable by law and not for that reason, a payment for service or goods. The Tribunal further held that the royalty i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... field and the State Legislature is denuded of its competence under entry 23 of List 11. In any event, we are of the opinion that cess on royalty cannot be sustained under entry 49 of List II as being a tax on land. Royalty on mineral rights is not a tax on land but a payment for the user of land." The said decision has been followed by the Madhya Pradesh High Court in CIT v. Gorelal Dubey [1998 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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