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2024 (3) TMI 1117 - ITAT RAIPURDisallowance of VAT expenses - Disallowance as "fee" or "charge" u/s40(a)(iib) - assessee is a state government owned company which is engaged in wholesale business of foreign liquor in Chhattisgarh - CIT(A) deleted the additions / disallowance - HELD THAT:- Identical issue has been dealt with by the Co-ordinate Bench of the Tribunal, Raipur in assessee's own case for the A.Ys.2015-16, 2016-17 and 2017-18 [2022 (12) TMI 1498 - ITAT RAIPUR] relying upon the law laid down in the case of Kerala State Beverages Manufacturing & Marketing Corporation Ltd. [2022 (1) TMI 184 - SUPREME COURT] wherein as approved the view taken by the Hon’ble High Court of Kerala that as “surcharge on sales tax” is a “tax”, and Section 40(a)(iib) does not contemplate “tax”, and surcharge on sales tax is not a “fee” or a “charge”, therefore, no disallowance under the said statutory provision was called for in the hands of the assessee. Accordingly, finding no infirmity in the view taken by the CIT(Appeals), we uphold the same and the addition is vacated. Decided in favour of assesse.
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