2011 (4) TMI 1377

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....e case, the learned CIT(A) erred in allowing the unpaid electricity duty and tax on sale of electricity amounting to Rs. 2,30,99,298/-, overlooking the provisions of Section 43B of the Income-tax Act 1961, and the fact that "recovery by way of adjustment" by Gujarat Govt. is not tantamount to sum actually paid by the assessee as required U/s 43B of the Incometax Act 1961." 3. At the time of hearing, none was present on behalf of the assessee. However, written submission was filed wherein it was requested that the appeal of the Revenue be decided, after considering the written submissions, which reads as under: Ground No. : Disallowance on account of Unpaid Electricity Duty and Tax on Sale of Electricity Duty 1.0 The onl....

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..../- payable as on 31st March, 2006 has already been adjusted by the Govt. of Gujarat in the month of July,2006 i.e., before the due date of filing of the Return and hence no disallowances are warranted on this count. The break-up of Electricity Duty amounting to Rs. 2,30,99,Z98/- is as under   Amount Rs. Electricity Duty & Tax on Sale of Electricity Duty 2,15,82,707 Compounding Fees 15,16,591 TOTAL 2,30,99,298 Out of the above Electricity Duty and Tax on sale of Electricity Duty is adjusted against the Government Subsidy and the Compounding Fees is paid by the appellant. The above amount payable as on 31s' March, GBP006 has been adjusted /paid as under: Particulars Amount Rs. ....

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.... hence no disallowances are warranted on this count. It is, therefore, submitted that the Commissioner (Appeals) has rightly deleted the additions made on this count." 3.1 The aforesaid written submissions were handed over to the ld. D.R. for his comments. The ld. D.R. pointed out that the electricity duty is covered by section 43B of the I.T. Act, 1961. In the aforesaid written submissions, the assessee has merely stated that the said amount has been accounted in the books of the Holding Company Gujarat Urja Vikas Nigam in the month of July, 2006 vide JV No.15 of July, 2006. This needs verification at the end of the Assessing Officer. The ld. D.R. contended that in the impugned order, the Learned Commissioner of Income Tax(Appeals) has ....