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TMI Blog1998 (4) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal is against the disallowance of Rs. 1,25,000 made under s. 43B towards unpaid audit fee. 4. At the time of hearing before us, it was contended by the learned counsel for the assessee that the audit fee though payable to the Audit Department of the State Government is not covered by s. 43B. He submitted that the meaning of the word "Fee" has to be considered in the light of the preceding words, namely, tax, duty or cess. That is, the fee is a sort of levy, which is collected by the Government on account of its sovereign power. The audit fee payable to the State Government is just a professional charges as payable to any auditor. Therefore, it is not covered by the s. 43B at all. However, he submitted that even though it is not cover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies Act specifies the public financial institutions, which are-- (i) Industrial Credit & Investment Corporation of India; (ii) Industrial Financial Corporation of India; (iii) Industrial Development Bank of India; (iv) Life Insurance Corporation of India; and (v) Unit Trust of India. Thus, NABARD is not financial institution as specified in s. 4A of the Companies Act. Therefore, for the purpose of s. 43B also, it has not to be considered as a public financial institution. Accordingly, we delete the disallowance of Rs. 1,46,953 made under s. 43B. ITA No. 383/Jab/1994--Assessee's appeal 8. The only ground raised in this appeal is against the prima facie adjustment made by disallowance of audit fee of Rs. 1,25,000 under s. 143(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the word tax, duty and cess. While interpreting the meaning of the word "fee", we have to keep in mind the earlier words used along with it. He further submitted that in any case it was a debatable issue whether an audit fee would be the fee within the meaning of s. 43B. The debatable matters cannot be considered, while making the prima facie adjustment. The learned Departmental Representative relied upon the orders of the authorities below and he submitted that the matter was fully covered by s. 43B(a) and, therefore, the AO rightly made the prima facie adjustment. 11. We have considered the arguments of both the sides and have perused the material placed before us. We agree with the submissions of the learned counsel for the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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