Rectification of mistake remains limited to self-evident record errors, preventing merits review through miscellaneous applications and preserving fin...
Tender creditworthiness conditions may extend to de facto Promoter Directors, with post-participation challenges generally barred absent arbitrariness...
Corporate representation in PMLA summons proceedings permitted through an authorised signatory, subject to directors' continuing cooperation and atten...
Helicopter charter classification requires effective control analysis, while territorial performance, reasoned credit orders and wilful suppression de...
Specified fund definition expands PAN exemption eligibility for registered alternative investment funds and qualifying International Financial Service...
Tax exemption for specified legal-services authority income applies retrospectively, subject to non-commercial activity, unchanged income sources, and...
The Appellate Tribunal addressed two key issues. Firstly, it ruled that disallowance of unpaid interest u/s 43B on a loan from the World Bank, advanced by the State Government, was not valid. The Tribunal clarified that interest payable to the State Government or World Bank is not covered u/s 43B, as these entities do not fall under the definition of covered financial institutions. Therefore, the disallowance was directed to be deleted. Secondly, regarding the addition on account of electricity duty u/s 43B, the Tribunal held that the duty collected by the assessee from consumers does not constitute trading receipts. As the duty is collected on behalf of the government and not levied on the assessee, section 43B does not apply. The Tribunal cited a Kerala High Court case, upheld by the Supreme Court, to support this ruling. Thus, the Tribunal decided in favor of the assessee on this issue as well.
The Appellate Tribunal addressed two key issues. Firstly, it ruled that disallowance of unpaid interest u/s 43B on a loan from the World Bank, advanced by the State Government, was not valid. The Tribunal clarified that interest payable to the State Government or World Bank is not covered u/s 43B, as these entities do not fall under the definition of covered financial institutions. Therefore, the disallowance was directed to be deleted. Secondly, regarding the addition on account of electricity duty u/s 43B, the Tribunal held that the duty collected by the assessee from consumers does not constitute trading receipts. As the duty is collected on behalf of the government and not levied on the assessee, section 43B does not apply. The Tribunal cited a Kerala High Court case, upheld by the Supreme Court, to support this ruling. Thus, the Tribunal decided in favor of the assessee on this issue as well.
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