Disallowance of electricity duty payable u/s 43B of Income Tax Act is unwarranted

Paschimanchal Vidyut Vitran Nigam Ltd. Vs DCIT (ITAT Delhi)

ITAT Delhi held that disallowance of Electricity Duty payable by the assessee by invoking provisions of section 43B of the Income Tax Act, 1961 is unwarranted and unjustified.

Facts- This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) [hereinafter referred to CIT (Appeals)] Meerut, dated 27.12.2017 for the assessment year 2013-14 in sustaining the disallowance made under section 43B of the Income Tax Act, 1961 (the Act) in respect of Electricity Duty payable.

Conclusion- On perusal of the order of the Tribunal in assessee’s own case for the assessment year 2014-15 in ITA. No. 7146/Del/2017 dated 2.11.2020 we find that identical issue has been decided by the Tribunal in assessee’s favour for the immediately succeeding assessment years i.e. 2014-15 and 2015-16 holding that no disallowance is warranted under section 43B of the Act in respect of Electricity Duty payable by the assessee.

Held that the Assessing Officer is not justified in disallowing the Electricity Duty payable invoking the provisions of section 43B of the Act. Therefore, we set aside the order of the ld. CIT (Appeals) and allow the appeal of the assessee.

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