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TMI Blog2024 (9) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... djustment of Electricity Duty by the Government against the subsidy sanctioned by the Government amounts to valid payment for the purposes of section 43B of the IT Act, vide its order dated 12-09-2012 and deduction should be allowed on a payment basis in the year the payment is made. Assessee has demonstrated that the Hon'ble Supreme Court's order [ 2012 (9) TMI 1251 - SC ORDER] addressed the issue of unpaid electricity duty, requiring a certificate from a Chartered Accountant. AO's failure to consider the Supreme Court's directive and the Tribunal s instructions has resulted in an improper assessment. CIT(A) has failed to take into consideration the judgement of the Hon ble Supreme Court relating to AY 1990-91 and decide th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1996-97, the assessee filed a Return of Income on 29-11-1996 declaring a total income of Rs. NIL. Assessment under section 143(3) of the Act was completed on 28-08-1998 with several additions and disallowances, enhancing the total income. At the time of the original assessment, the assessee explained that the provisions of section 43B of the IT Act were not applicable to the liability of Electricity Duty and Tax thereon, as it did not fall within the definition of Statutory Liability. However, the AO disallowed this, leading the assessee to file an appeal with the Ld.CIT(A). The Ld.CIT(A), after detailed verification of facts, allowed the matter and deleted the additions. 3. The Revenue, aggrieved by the Ld.CIT(A)'s order, preferred an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 262 ITR 97. The learned Commissioner of Income Tax (Appeals) out to have appreciated that Electricity Duty and Tax on Sale of Electricity Duty is covered by section 43B of the I T Act, hence deduction has to be allowed on payment basis. The Electricity Duty was already adjusted before the end of the year under consideration. 2.0 The appellant craves leave to add to , alter, delete or modify the ground of appeal either before or at the time of hearing of this appeal. On the grounds of appeal: 5. The counsel for the assessee submitted that an amount of Rs. 51,99,98,843/- payable as of 31-03-1996 was adjusted by the Government of Gujarat on 29-03-1997, thus the deduction should be allowed in the year of payment/adjustment. He further submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee claims by way of adjustment on 21st August, 1990. In the above circumstances, we direct the assessee to produce certificate before the Assessing Officer within a period of four weeks. The Assessing Officer will take the certificate on record and decide the matter in accordance with law. Accordingly, the civil appeal filed by the assessee is disposed of with no order as to costs. 7.1. As it can be seen here that the Hon'ble Supreme Court, in its judgement relating to the Assessment Year 1990-91, has held that the assessee is entitled to the benefit of section 43B of the Act. 7.2. It is also noted that the adjustment of Electricity Duty by the Government against the subsidy sanctioned by the Government amounts to valid payment for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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