TaxTMI 
TaxTMI 
2010 (1) TMI 724
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....uction of the expenditure only if payment is made in the previous year. 2. We have heard Standing Counsel appearing for the appellant and Advocate Sri T.M. Sreedharan appearing for the respondent. 3. The respondent/assessee participated in the auction conducted by the State Excise Department for sale of toddy in Kottarakkara and Pathanapuram ranges during the previous year relevant for the assessment year 1999-2000. Even though the assessee paid full rental/licence fee in the accounting year itself for auction purchase of toddy shops in Pathanapuram range, he withheld payment of Rs. 71,04,010 being part of Rs. 1.72 crores payable for the Kottarakkara range. Consequent upon the non-payment of the rental/licence fee of Rs. 71,....
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....um payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or (b) to (f) ** ** ** shall be allowed irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him only in computing the income referred to in section 28 of that previous year in which such sum is actually paid by him." According to the Standing Counsel, the kist/rental or licence fee payable in this case is nothing, but statutory fee payable under the Abkari Act and therefore, it is squarely covered by section 43B(a) after the amendment and therefore, the Karnataka decision was wrongl....
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.... provisions of section 43B take in not only tax and duty, but "cess" and "fee" also. In our view, after the amendment, all the statutory levies viz., tax, duty, cess and fee are covered by section 43B(a) of the Act. Further any levy in the nature of tax, duty, cess and fee by whatever name called are also covered by section 43B of the Act. When the statutory levy itself is under the head 'tax, duty, fee or cess', there is no scope for enquiry as to whether such levies are in substance, tax, duty, cess or fee as understood under the Act. In other words, only when a levy is under some other name, there is scope for enquiry to find out whether the same in substance represents tax, duty, cess or fee attracting section 43B of the Act. In this ca....