Agent-collected electricity duty falls outside section 43B disallowance when remitted to the State Government.

Amounts collected by an assessee merely as an agent under a statutory obligation to remit them to the Government do not constitute a liability payable by the assessee by way of tax, duty or fee for section 43B purposes. Electricity duty collected under the Electricity Duty Act and credited to the State in that capacity was therefore outside the scope of section 43B disallowance. Applying consistency with earlier orders in the assessee's own case, the same view was followed for the year under consideration, and the disallowance was not sustained.

---

---

Issues: Whether electricity duty collected by the assessee on behalf of the State was liable to disallowance under section 43B of the Income-tax Act, 1961.

Analysis: The electricity duty was collected pursuant to the obligation under sections 4 and 5 of the Electricity Duty Act, 1963, and was credited to the State Government as an amount collected by the assessee in the capacity of an agent. Following the earlier orders in the assessee's own case, and in the absence of any distinguishing feature or contrary higher court decision, the principle of consistency required the same view to be adopted for the year under consideration. The amount did not represent a sum payable by the assessee by way of tax, duty, or fee within the scope of section 43B.

Conclusion: Disallowance under section 43B was not warranted, and the claim of the assessee was to be allowed.

Final Conclusion: The addition/disallowance made by invoking section 43B was set aside and the assessee obtained full relief.

Ratio Decidendi: Amounts collected by an assessee merely as an agent under a statutory duty to remit them to the Government do not constitute a liability payable by the assessee by way of tax, duty, or fee for the purpose of section 43B.

---