No Section 40(a)(iib) disallowance for surcharge on Sales Tax & Turnover Tax

Kerala State Beverages (Manufactoring And Marketing) Corporation Limited Vs ACIT (Kerala High Court) Conclusion: Surcharge on sales tax and turnover tax was not a ‘fee or charge’ coming within the scope of Section 40 (a) (iib) and was not an amount which could be disallowed under the said provision. Therefore the disallowance made in this regard was liable to be set aside. Held: DCIT finalized the assessment of income tax against assessee under Section 143 (3). But, Pr. CIT initiated proceedings under Section 263 on the ground that the same was erroneous and was prejudicial to the ...