9911796707
TMI Blog2019 (10) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of disallowance of payment made to Uttaranchal Power Corporation, (ii) confirmation of disallowance of payment made to Sales Tax Department (iii) rejection of alternative plea of proportionate deduction under section 80IC of the Income Tax Act, 1961 ["Act" in short] in the event of confirmation of disallowances. 2. Brief facts of the case are that the assessee filed its return of income for the assessment year 2012-13 admitting income at Rs. 4,45,54,222/- after claiming deduction of Rs. 5,23,49,681/- under Chapter VIA and paid tax on MAT provisions. The case of the assessee was selected for scrutiny. Against statutory notices, the assessee filed relevant details. On verification of the details filed by the assessee, the assessment u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before the Tribunal. By reiterating the submissions as made before the authorities below, the ld. Counsel for the assessee prayed for deleting the addition. On the other hand, the ld. DR strongly supported the orders of authorities below. 5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. We have also perused the letter issued by the Uttaranchal Power Corporation Ltd. in 2009, filed by the assessee, wherein, it has been categorically stated that as per tariff order issued by UERC any violation detected shall attract penalty of Rs. 50 per KVA/KW per day of the contracted demand for the number of days of such violation. The said order further stated that durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commission from time to time. For such consumers' energy charge, demand charge and other charges as per rate of charge given above shall be applicable. However, any violation detected in usage of power during restricted hours (above 15% of contracted load) shall attract a penalty, continuous supply surcharge and other terms as specified by the UERC. 5.2 Thus, without opting for continuous power supply, the assessee was found in usage of energy during restricted hours (above 15% of contracted load), prohibited by law, thereby, it was levied to pay penalty, which cannot be treated as just like payment of electricity charges, but, it is an offence committed by the assessee against which, the assessee was penalized. As per Explanation to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vy of penalty by the Assessing Officer [Commercial Tax], the assessee preferred further appeal. Therefore, the penalty payment made by the assessee and disallowed by the Assessing Officer was rightly confirmed by the ld. CIT(A). Thus, the ground raised by the assessee stands dismissed. 7. The next ground raised in the appeal of the assessee relates to deduction under section 80IC of the Act on the ground that confirmation of disallowances will increase the income of the assessee and thereby the assessee is eligible to claim deduction under section 80IC of the Act. By referring to CBDT Circular No. 37/2016 dated 02.11.2016, it was the submission of the assessee that the disallowances made under sections 32, 40(a)(i), 40A(3), 43B, etc. of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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