2015 (1) TMI 926

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....x Appeal. 1.1 This court, while admitting this appeal, has formulated the following substantial question of law for consideration:              "Whether the Appellate Tribunal was right in law and on facts in confirming the order passed by the CIT(A) deleting the addition of Rs. 12,26,746/- made u/s. 43B on account of deferred electricity duty?" 2. The Assessing Officer disallowed deferred electricity duty u/s 43B of the Income Tax Act, 1961 (the Act) while passing the assessment order on the ground that electricity duty is covered u/s. 43B of the Act and hence the same is allowable only on actual payment basis. On appeal, the CIT (Appeals) allowed the same and deleted the....

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....all for any interference by this Court. He has drawn the attention of this court to the findings of fact arrived at by the Tribunal and also the decision of this Court in the case of Commissioner of Income-Tax vs. Shree Talal Taluka Sahakari Khand Udyog Mandali Ltd reported in [2003] 259 ITR 21 wherein it is held that the assessee was entitled to relief and benefit given under section 43B for unpaid sales tax liability as the CBDT vide circular dated 25.09.1987 has made it clear that if sales tax due to Government is converted as a loan which may be repaid by assessee subsequently by installments the department shall see that sales tax due as actually paid for all purposes is available to assessee. 7. We have heard learned counsel for th....

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....der of the CIT(A). We accordingly confirm the order of the CIT(A). Thus, Ground No. 1 stands dismissed." 7.1 The CIT(A) while directing the disallowance to be deleted has observed in para 2.3 as under:              "2.3 I have carefully considered the observation of the A.O as well as the submission made by the counsel of the appellant and I am of the view that the disallowance made by the A.O. in respect of deferred electricity amounting to Rs. 12,26,746/- is not justified, because the Gujarat Government had issued a notification with a view to aberiate the adverse effect caused to industrial unit under deferment scheme due to operation of sec. 43B and this concession to the....