9911796707
TMI Blog2008 (5) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee to collect tax under section 206C(1C) of the Income-tax Act, in respect of octroi collected by the agent appointed by the assessee, Municipal Corporation in the City of Akola. 4. Income-tax Department conducted survey on 26-3-2007 and on the basis of information collected therein, came to the conclusion that assessee was to collect tax at source on the "octroi" which is in the nature of "Toll Plaza" within the meaning of section 206C(1C) of the Income- tax Act. This section for the sake of brevity is reproduced as under: "(1C) Every person, who grants a lease or a licencee or enters into a contractor or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to anot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to the provisions thereof impose any of the following taxes, namely:- (a) octroi; (aa) a cess on entry of goods into the limits of the City for consumption use, or sale therein to be levied in lieu of octroi with the previous sanction of the State Government; (b) ** (c) on tax on dogs, (d) a theatre tax; (e) a toll on animals and vehicles entering the city; (f) any other tax which the [State] Legislature has power under the [Constitution] to impose in the [State]. (2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), no tax or toll shall be levied on motor vehicles save as provided in section 20 of the Bombay Motor Vehicles Act, 1958. (3) The municipal taxes shall be assessed and levied in ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Eart of Dysari, (1916-18) AC 57-58;....) 8. The public benefit envisaged under section 2 of the Tools Act, 1851 is the making or repairing of any road or bridge at the expense of the State Government. For the advantage obtained by the public by the construction of the road and bridges, the State Government is entitled to reimburse itself for providing the service." 6. A matter also came up before Patna High Court in the case of Maheshwari Singh v. State of Bihar AIR 1966 Pat. 462 where expression 'toll' is defined to mean a levy for providing funds for the maintenance of roads and bridges and repayment of loan if any taken for their construction. In paragraph-7 in the said order, it is stated by the Court that by merely using the expr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the road in repair. 8. In paragraph-14 of the above order, it is mentioned that word 'toll' is not of any recent use. There have been many a kind of toll charged in England. Different names have been given to them. The two tolls recognized under the common law with respect to the passage on the highways have been given the names of toll-traverse and toll stallage, canal toll, ferry toll, market toll. In India too tolls of different kinds have been charged for a long time. 9. Referring to Webster New International Dictionary definition to word "toll" it is described as a tax or due paid for some liberty or privilege particularly for the privilege of passing over a highway, as a road or bridge, for that of keeping a booth, vending goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... graph-18 that though tolls are of different types and may be levied in different situations, it ordinarily means the amount which the Government, or a local authority or a person duly authorized by the Government may collect for passage of carriages and vehicles over a road or bridge. This meaning is by no means exhaustive. Where provision for levy and collection of toll is made under the Legislature enactment or a subordinate legislation then the levy is to be governed strictly according to the provisions of the statute or rules or any other instrument, as the case may be. 12. Various dictionary meanings as discussed in paragraphs-13 to 17 are noted as under: "13. The expression 'toll thorough' means where a town prescribes to have tol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nership of the land crossed by the public (even if now perhaps served from it), the land having been at the date of the grant the grantee's private property, and having been then dedicated by him to the public in consideration of the toll to be taken. It is further stated therein that a toll thorough is independent of any ownership of the soil by the original grantee, the consideration necessary to support it being usually the liability to repair the particular highway or bridge. 17. Dealing with 'tolls under statute' at page 97, para 139 it is stated that highway and bridge tolls may be payable under statute. In the case of any independent statutory undertaking engaged in the maintenance of a bridge, the power to revise the amount of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
