DCIT Vs Tata Power Delhi Distribution Ltd (ITAT Delhi)
ITAT Delhi held that provisions of section 43B of the Income Tax Act is not attracted to the licensee/assessee in respect of electricity duty. Thus, question is answered in favour of the assessee and hence appeal of revenue dismissed.
Facts- Vide the present appeal, the revenue is challenging the deletion of addition under section 43B of the Act on account of unpayable portion of Energy Tax.
Vide the present appeal, assessee has disputed in the rate of depreciation claimed on UPS at a higher rate as against 15% granted by the learned AO.
Conclusion- Held that this issue was subject matter of adjudication by the Hon‘ble Punjab & Haryana High Court in the case of Pr. CIT vs Dakshin Haryana Bijli Vitran Nigam Ltd wherein it was held that in our view, the electricity duty, not being a sum payable by the assessee as a primary liability by way of tax, duty, cess or fee, Section 43B is not attracted to the licensee/assessee in respect of electricity duty collected by it for being passed on the State Government. Thus, the ratio laid down in the aforesaid Hon‘ble High Court decision is squarely applicable to the facts of the instant case. Respectfully following the same, we do not find any infirmity in the order of the learned CITA granting relief to the assessee. Accordingly, the Ground No. 3 raised by the revenue is dismissed.
