2015 (6) TMI 1121 - HC - Income Tax

Addition u/s 43B - Electricity duty payable under section 3(1) of the Electricity Duty Act, 1963 and surcharge payable to Government - Held that - The issue stands already decided in favour of the assessee by virtue of the judgment of this court in Kerala State Electricity Board v. Deputy CIT 2010 (11) TMI 127 - Kerala High Court wherein held Section 43B cannot be invoked in making the assessment of the liability of the appellant under the Income-tax Act with regard to the amounts collected by the appellant pursuant to the obligation cast on the appellant under section 5 of the Kerala Electricity Duty Act, 1963. - Decided against revenue Application of section 115JB as to tax book profit - Held that - The Commissioner (Appeals) found this issue in favour of the assessee and this was confirmed by the Tribunal. This issue is also covered in the aforesaid judgment of this court rendered in the case of the respondent-assessee itself.- Decided against revenue

Summary

Issues:
1. Electricity duty and surcharge payable under the Electricity Duty Act, 1963.
2. Application of section 115JB of the Income-tax Act for taxing book profit.

Issue 1: Electricity Duty and Surcharge:
The appeal by the Revenue challenges the order of the Income-tax Appellate Tribunal regarding the electricity duty payable under the Electricity Duty Act, 1963, and the surcharge payable to the Government. The Assessing Officer disallowed the amounts under section 43B of the Income-tax Act, stating that any sum payable under any law is deductible only in the year of actual payment. However, the Commissioner (Appeals) and the Tribunal reversed this decision. The High Court noted that a previous judgment favored the assessee in a similar case, establishing that the amounts in question were allowable deductions. Therefore, the Tribunal's decision in favor of the assessee was upheld.

Issue 2: Application of Section 115JB:
The second issue pertains to the application of section 115JB of the Income-tax Act for taxing book profit. The Commissioner (Appeals) ruled in favor of the assessee on this matter, a decision that was upheld by the Tribunal as well. The High Court pointed out that a previous judgment by the same court had already covered this issue in favor of the respondent-assessee. Consequently, both issues raised by the appellant were decided against it. As a result, the High Court found no reason to interfere with the decisions of the lower authorities and dismissed the appeal.

In conclusion, the High Court upheld the decisions of the lower authorities regarding the electricity duty and surcharge as well as the application of section 115JB for taxing book profit. The judgments in similar cases and the interpretation of relevant legal provisions favored the assessee, leading to the dismissal of the Revenue's appeal.