https://www.taxtmi.com/caselaws?id=430566 VAT collected under a State taxing statute and remitted to the Government was held not to fall within section 40(a)(iib) of the Income-tax Act, because that provision is confined to royalty, licence fee, service fee, privilege fee, service charge or similar charges levied exclusively on a State Government undertaking, or amounts appropriated from it by the State Government. The tribunal distinguished tax from fee, found no quid pro quo or exclusive levy, and treated the VAT payment as outside the disallowance. On that basis, the revision under section 263 was also held unsustainable, and the assessee's deduction claim was upheld. en-us Mon, 14 Nov 2022 00:00:00 +0530 Tue, 22 Nov 2022 11:18:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=430566 VAT collected under a State taxing statute and remitted to the Government was held not to fall within section 40(a)(iib) of the Income-tax Act, because that provision is confined to royalty, licence fee, service fee, privilege fee, service charge or similar charges levied exclusively on a State Government undertaking, or amounts appropriated from it by the State Government. The tribunal distinguished tax from fee, found no quid pro quo or exclusive levy, and treated the VAT payment as outside the disallowance. On that basis, the revision under section 263 was also held unsustainable, and the assessee's deduction claim was upheld. Case-Laws Income Tax Mon, 14 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=430566