TaxTMI 
TaxTMI 
2001 (7) TMI 54
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....d for consideration reads as under: "Whether, on the facts and in the circumstances of the case and in law, the Income-tax Appellate Tribunal was justified in holding that the Government audit fees payable by the respondent is not a duty, cess or tax as envisaged in section 43B, when ultimately such payment goes to the State Treasury?" The facts: The essential facts are straightforward. In the assessment year in question, the Assessing Officer made disallowance under section 43B of the Act, in respect of outstanding Government audit fees amounting to Rs.1,63,925. Being aggrieved by the aforesaid order, the assessee filed an appeal before the Commissioner of Income-tax (Appeals), Kolhapur, who confirmed the order of the Assessing....
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....ties Act, 1960, for getting the accounts of the societies audited. It has not been paid by the assessee by way of tax, duty, cess or fees as envisaged under section 43B of the Act. The statutory provisions: Adverting to the finding on the issue raised in this appeal, let us turn to the relevant statutory provisions governing the issue in question. Income-tax Act 1961: "43B. Certain deductions to be only on actual payment. -Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of- (a) any sum 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 ... shall be allowed (irrespec....
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....e under sub-section (2) of section 155. (2) The State Government may authorise the Registrar to grant total or partial exemption from the payment of audit charges and/or supervision charges assessed to any society or class of societies." Findings: Having heard the parties, it is clear that the provisions of section 43B of the Act provide for certain deductions, while computing the income referred to in section 28 of the previous year, if any sum is actually paid by the assessee in that year. One such item is, deduction of the amount paid by way of tax, duty, cess or fee by whatever name called. The question is what do you mean by "tax", 'duty", "cess" or "fees" referred to in clause (a) of section 43B. Can the levy of audit charges....
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....r category; (3) that class or category is not exhausted by the enumeration; (4) the general term follows the enumeration; and (5) there is no indication of a different legislative intent. As held by the apex court in the case of Amar Chandra Chakraborty v. Collector of Excise, Government of Tripura, AIR 1972 SC 1863, there is no generic difference between a tax and a fee, though broadly a tax is a compulsory extraction as part of a common burden without promise of any specific advantages to the classes of taxpayers whereas fee is payment for services rendered, benefit provided or privileges ' conferred. The specific benefit or advantage to the payers, of fees may even be secondary as compared with primary motive of regulation in public i....