2022 (10) TMI 363 - SCH - Income Tax

Minimum Alternate Tax (MAT) - Applicability of section 115JB on electricity company - As per HC fiction fixed under section 115JB cannot be pressed into service against the appellant while making the assessment of the tax payable under the Income-tax Act - Applicability of section 43B in respect of the electricity duty collected - As 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 - HELD THAT - We have gone through the circumstances on record and considered the rival submissions. In our view, no interference is called for. We, therefore, dismiss this appeal. Addition u/s 43B - Electricity duty payable under section 3(1) of the Electricity Duty Act, 1963 and surcharge payable to Government - Applicability of section 115JB on electricity company - Addition on electricity duty and short provision of interest on Government loan made u/s 43B - HELD THAT - The view taken by the High Court 2010 (11) TMI 127 - KERALA HIGH COURT and connected matters was relied upon by the High Court in the instant matters and the issue was answered against the Revenue. Having confirmed the view taken by the High Court, the logical consequence is that the instant matters deserve dismissal. Applicability of Section 115JB to the assessee Electricity Company - Since the issue involved in the instant matters stand covered by the dismissal of Civil Appeal in this case the instant matters are also dismissed.

Summary

Issues involved:
1. Interpretation of the judgment rendered by the Division Bench of the Kerala High Court in I.T.A. No.1710 of 2009 dated 12.11.2010.
2. Application of the High Court's decision in various connected matters.
3. Dismissal of appeals based on the High Court's rulings.

Analysis:

1. The Supreme Court considered the judgment delivered by the Division Bench of the Kerala High Court in I.T.A. No.1710 of 2009 dated 12.11.2010. The Court heard arguments from both sides represented by learned senior advocates. After reviewing the circumstances and submissions, the Supreme Court concluded that no interference was necessary and thus dismissed the appeal without imposing any costs. Any pending applications were also disposed of in light of this decision.

2. In several connected matters, the High Court's decision in I.T.A. No.1710 of 2009 was relied upon, and the issue was resolved against the Revenue. The Supreme Court, having affirmed the High Court's stance, ordered the dismissal of these connected matters as well. Any pending applications were similarly disposed of in these cases.

3. The Supreme Court also addressed issues from SLP(C) No.11435/2022, 11393/2022, and 12257/2022 originating from the Rajasthan High Court. Since the subject matter of these cases overlapped with the dismissal of Civil Appeal No.151 of 2015, the Supreme Court decided to dismiss these as well. Any pending applications in these cases were also disposed of accordingly.