2018 (7) TMI 135

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....t is returned, by reason of the introduction of a new provision at Section 40(a)(iib) of the Income Tax Act, 1961 (for short 'the Act'). The assessee filed return showing a total income of Rs. 2,34,39,61,420/-. A disallowance was made to deductions claimed as gallonage fee, licence fee, shop rental (kist) and surcharge on sales tax. This was a deduction allowed over the years, which stood disallowed in the present year for reason of the introduction of the aforesaid provision. The disallowance came to Rs. 8,11,90,88,115/-. 2. We see from the assessment order as also the order impugned in the Writ Petition that the disallowance was made based on the provision as introduced in clause (iib) in Section 40(a), which is extracted hereund....

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....indirectly, in so far as the various levies imposed on the appellant. The learned Counsel for the appellant submits that the levy imposed, cannot be said to be exclusive, since it is imposed on any vendor of liquor within the State. The fact remains that the privilege, as available with the State for vending liquor, has been conceded to the Corporation, which carries out the same under licenses issued under the Abkari Act. The retail sales are only through outlets of itself and a Consumer Co-operative Society. There is also sales effected to bars and clubs existing inside the State, who are also licensed under the Abkari Act. The levy of license fee at Rs. 5,75,00,000/- is with respect to the licenses obtained by individuals or institutions....