9911796707
TMI Blog2011 (4) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on sale of electricity amounting to ₹ 2,30,99,298/-, overlooking the provisions of Section 43B of the Income-tax Act 1961, and the fact that recovery by way of adjustment by Gujarat Govt. is not tantamount to sum actually paid by the assessee as required U/s 43B of the Incometax Act 1961. 3. At the time of hearing, none was present on behalf of the assessee. However, written submission was filed wherein it was requested that the appeal of the Revenue be decided, after considering the written submissions, which reads as under: Ground No. : Disallowance on account of Unpaid Electricity Duty and Tax on Sale of Electricity Duty 1.0 The only issue involved in the appeal is relating to the disallowance of electricity du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the month of July,2006 i.e., before the due date of filing of the Return and hence no disallowances are warranted on this count. The break-up of Electricity Duty amounting to ₹ 2,30,99,Z98/- is as under Amount Rs. Electricity Duty Tax on Sale of Electricity Duty 2,15,82,707 Compounding Fees 15,16,591 TOTAL 2,30,99,298 Out of the above Electricity Duty and Tax on sale of Electricity Duty is adjusted against the Government Subsidy and the Compounding Fees is paid by the appellant. The above amount payable as on 31 s ' March, 006 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 154 05-07-2006 9,07,894 12-07-2006 3,92,765 24-07-2006 1,42,383 TOTAL 15,16,591 The copies of the challans showing the payments are enclosed in Annexure-II. In view of the facts and circumstances, it is clear that even if the provisions of section 43B are made applicable to the unpaid Electricity Duty, the same has been fully paid before the due dote of filing of the I T Return and hence no disallowances are warranted on this count. It is, therefore, submitted that the Commissioner (Appeals) has rightly deleted the additions made on this count. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, which reads as under: 11.2 I have given my careful consideration to the submissions and facts available on record. The appellant's contention that the provision of Sec.43B does not apply to electricity duty and tax on electricity duty payable to Government of Gujarat is not sustainable in law. To that extent the AO was justified in holding that the provisions of sec.43B are applicable. However, in view of the fact that the amount has been recovered by the GOG by way of adjustment from the grants given the same is allowable under section 43B of the Act, Similarly since, the compounding fees have been paid prior to filing of return, the same is also allowable. This ground is therefore allowed. 4.1 With regard to verificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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