TaxTMI 
TaxTMI 
2015 (5) TMI 397
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....43B of the Income Tax Act (hereinafter referred to as 'Act') since it was not actually paid before the expiry of the relevant previous year. On 30.04.1993, the assessing officer completed the assessment for the year 1990-1991 and inter alia confirmed disallowance of the vend fee. Against this, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who, by his order dated 24.05.1993, deleted the disallowance under Section 43B and allowed the appeal of the respondent-assessee. Aggrieved by the said order, the Revenue preferred an appeal before the Income Tax Appellate Tribunal, which confirmed the aforesaid order of the Commissioner (Appeals) by its judgment and order dated 15.04.1998. Against the said or....
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....ccordance with the terms and conditions of the agreement governing such loan or borrowing, or (e) any sum payable by the assessee as interest on any loan or advances from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan or advances, or (f) any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee, 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:" A reading of the Section a....
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....only because this case pertains to a period prior to the amendment made with effect from 01.04.1989. Shri C. N. Sreekumar, learned counsel on behalf of the respondent, referred us to the counter affidavit filed in this Court and to an Annexure to the said counter affidavit. His argument was that it is clear that the so-called vend fee in the present case is nothing but a consensual arrangement by which ultimately machinery and equipment used by sugar mills which were very old and which require urgent repair / replacement could be so repaired or replaced. According to him, the aforesaid vend fee not being a compulsory exaction by the State, would not, therefore, fall within any of the expressions used in Section 43B(a) of the Act. Having ....
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....ever any statutory liability does not come within the purview of section 43B. It is only that the statutory liability which is in the nature of tax, duty, cess or fee to which the provisions of section 43B are attracted. Since the kist/rental could not be considered to be falling under either of the items, the provisions of section 43B cannot be attracted and as such we are of the view that the Tribunal was justified in law in holding that the kist amount payable to the Government by the assessee could not be brought within the purview of the provisions of section 43B of the Income Tax Act, 1961. It is a different matter that the licensees are not paying the rent in time for which it is only the Legislature which could intervene and not the....