9911796707
TMI Blog1991 (9) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... d to distinguish between 'cess', 'tax' and 'duty', that 'cess' cannot be disallowed under s. 43B, as it is neither 'tax' nor 'duty' and that cess has a distinct meaning and legal connotation different from the expression 'tax' or 'duty'. Therefore, it is contended that 'cess' cannot be disallowed under s. 43B prior to the amendment introduced by the Finance Act, 1988, as the same was neither clarificatory in nature nor retrospective in operation. The authorised representative relied on the case reported in Sinkakollu Subba Rao Co. Ors. vs. Union of India Ors. (1988) 71 CTR (AP) 34 : (1988) 173 ITR 708 (AP) in support of its contentions 3. The learned Departmental Representative on the other hand completely relied on the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The 'cess' cannot be equated with either 'tax or duty'. They are entirely different. The case law relied by the CIT(A) in his order are not to the point at issue and they are not discussed here. The case law relied on by the learned authorised representative is directly on the issue and is an authority. It is observed by their Lordships in the case of Sinkakollu Subba Rao Co. Ors. vs. Union of India Ors. that "Shri M.J. Swamy, learned counsel for the petitioners in Writ Petitions Nos. 14218, 14220 and 14222 of 1984, invited our attention to the assessment orders passed in those cases. One of the items disallowed is 'market cess'. The disallowance was made on the ground that it was not paid during the accounting year and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f cess is not paid. We, accordingly, reverse the CIT(A)'s order on this point. The order of the CIT(A) is accordingly reversed and the assessee's appeal on this point is allowed. 7. The second ground of appeal is regarding the charging of interest under s. 215 of the IT Act. This issue, the CIT(A) has disposed of with the observation that the quantum of interest chargeable under this section will get modified in the light of the revised assessed tax after appeal effect. The learned authorised representative of the assessee contended that the CIT(A) did not consider the legality of the levy of interest under s. 215 as charged by the ITO and, hence, the CIT(A)' order to extent of confirming only modification of the quantum of interest char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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