Section 43B fee meaning excludes government audit charges paid for services, avoiding disallowance under income tax law.

Government audit charges payable under the Maharashtra Co-operative Societies law do not fall within the terms "tax, duty, cess or fee" in section 43B of the Income-tax Act, 1961. The word "fee" was read in context with the associated expressions by applying ejusdem generis, so it was confined to a statutory levy of public character and not to payments for audit services rendered by Government auditors. On that reasoning, such audit charges were not subject to disallowance under section 43B, and the issue was resolved in favour of the assessee.

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Issues: Whether Government audit charges payable under the Maharashtra Co-operative Societies law constitute a duty, cess or fee within section 43B of the Income-tax Act, 1961 so as to attract disallowance.

Analysis: Section 43B allows deduction only on actual payment of sums payable by way of tax, duty, cess or fee. The expression "fee" in that provision was construed in the setting of the associated words "tax", "duty" and "cess", applying the principle of ejusdem generis. Audit charges payable for statutory audit of society accounts were treated as consideration for services rendered by Government auditors and not as an impost of the same genus as tax, duty or cess. The concept of fee referred to in section 43B was held to denote a statutory levy of a public character, not a payment for professional or service-related audit charges.

Conclusion: Government audit charges are not covered by section 43B of the Income-tax Act, 1961, and the disallowance was not sustainable; the issue was decided in favour of the assessee.

Ratio Decidendi: For section 43B, the word "fee" must be read in the context of the associated words "tax", "duty" and "cess" and does not extend to payments made for audit services rendered by Government auditors.

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