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TMI Blog2013 (2) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable in his case for furnishing the return of income - Nowhere it is mentioned in the section or proviso to it that unpaid electricity charges are not deductible. Assessee challenging the balance electricity charges of Rs. 52,23,790 filed a writ petition before this court against the APSEB and this court granted interim stay and the writ petition is pending - As such, the assessee has shown the said amount as liability - Provisions of section 43B of the Act would not attract to such unpaid electricity charges. Further, non-payment of such disputed electricity charges to the APSEB cannot be termed as "fees" and that the Revenue has to give deduction to the said amount - such electricity charges are in the nature of statutory liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had paid only a sum of Rs. 1,14,86,598 and the remaining amount of Rs. 52,23,790 was not paid either during the relevant previous year or on or before the time provided under section 139(1) of the Income-tax Act, 1961 (for short "the Act") for furnishing the return of income. On being asked by the Revenue for payment of the balance amount of Rs. 52,23,790 to the APSEB, the assessee disputed the same stating that the original agreement with the APSEB for assessing the assessee-company's tariff was under category I, however, it has assessed the tariff under category III and raised demands for enhanced amounts. On receipt of such demand, the assessee approached this court by filing writ petition and obtained stay. 2. The Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred the following questions stated to be of law arising out of its order for the assessment year 1991-92 for the opinion of this court. "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the additions towards unpaid elec-tricity charges on the ground that the provisions of section 43B of the Act would not apply thereto ? Whether, on the facts and in the circumstances of the case, the Tribunal was not in error in overlooking that electricity charges are in the nature of fees and, therefore, the provisions of section 43B(i) would attract if such charges have remained unpaid either during the relevant previous year or on or before the due date under section 139(1) of the Income-tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the APSEB and this court while granting stay, directed the APSEB to raise the demand for the net amount after giving the benefit of 25 per cent. rebate, and the assessee paid 75 per cent. of the bill as per the directions of this court. Thus, out of a total demand of Rs. 1,67,10,388 raised by the APSEB towards electricity charges, a sum of Rs. 1,14,86,598 was paid in terms of the directions of this court and the balance amount of Rs. 52,23,790 was shown as liability in the books of account, as the same was covered by the stay granted by this court. 6. For reappraisal, it is expedient to quote section 43B of the Act. "43B. Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return." 7. Section 43B of the Act does not specifically mention about the electricity charges. The proviso to the section says that an assessee has to pay the actual liability on or before the due date applicable in his case for furnishing the return of income. In the instant case, the assessee challenging the balance electricity charges of Rs. 52,23,790 filed a writ petition before this court against the APSEB and this court granted interim stay and the writ petition is pending. As su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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