Sponsored
    Follow Us:

Case Law Details

Case Name : Hubli Electricity Supply Vs DCIT (ITAT Bangalore)
Appeal Number : ITA No.341/Bang/2023
Date of Judgement/Order : 01/12/2023
Related Assessment Year : 2010-11
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Hubli Electricity Supply Vs DCIT (ITAT Bangalore)

The Income Tax Appellate Tribunal (ITAT) Bangalore’s decision in the case of Hubli Electricity Supply versus Deputy Commissioner of Income Tax (DCIT) presents a significant examination of the provisions of section 43B of the Income Tax Act. This case underscores the legal intricacies involved in the treatment of taxes, duties, cesses, or fees by businesses and their impact on the computation of taxable income. Through a detailed analysis, this article aims to dissect the tribunal’s ruling, its legal grounding, and its implications for businesses.

Detailed Analysis

The crux of the dispute in Hubli Electricity Supply vs DCIT revolves around whether the amount in question, not charged to the Profit & Loss (P&L) account, is liable for disallowance under section 43B of the Act if not paid before the due date of filing the return of income. Section 43B specifies that certain deductions are only allowable if the payment is made on or before the due date for filing the income tax return.

Legal precedents play a pivotal role in the tribunal’s decision-making process. The tribunal referenced several cases, including the landmark judgment by the Supreme Court in the case of Chowringhee Sales Bureau Pvt. Ltd., which clarified the treatment of sales tax as revenue receipts, irrespective of its accounting treatment. Further, the tribunal examined various ITAT decisions, highlighting the principle that non-payment of government dues such as service tax by the due date could lead to disallowances, even if these amounts are not claimed as expenditures in the P&L account.

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031