TaxTMI 
TaxTMI 
2020 (11) TMI 113
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.... 3. Assessee is a subsidiary company of U. P. Power Corporation Ltd. and is stated to be engaged in the business of power distribution. Assessee filed its return of income for A.Y. 2014-15 on 30.09.2014 declaring loss of Rs. 7,64,82,79,964/-. The case was selected for scrutiny and thereafter, the assessment was framed u/s 143(3) of the Act vide order dated 02.12.2016 and the total loss was determined at Rs. 20,11,28,97,324/-. Aggrieved by the order of AO, Assessee carried the matter before CIT(A) who vide order dated 29.09.2017 in Appeal No. 227/2016-17 granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee and Revenue are now in appeal before us. Assessee in ITA No. 7146/Del/2017 has raised the following grou....
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....mmissioner of Income Tax (A), Meerut may be set aside and that of the AO be restored. 3. That the appellant craves leave to add, modify and/or delete any ground(s) of appeal." 5. We first proceed to decide the quantum appeal in Appeal No 7146/Del/2017 for A.Y. 2014-15. 6. During the course of assessment proceedings, AO on perusing the details of "current liabilities" noticed that assessee had shown Rs. 590.10 lakhs (rounded off) under the head electricity duty and other levies payable to Government. On the basis of the details furnished by assessee, AO noticed that assessee had made assessment of electricity duty of Rs. 5,52,98,00,000/- of which Rs. 3,44,22,00,000/- was adjusted from the subsidy and the balance amount of Rs. ....
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....1.2020 (in ITA No 4980/Del/2018) has decided the issue in Assessee's favour. He pointed to the relevant findings of the order and further submitted that since the facts of the case under consideration is identical to that of A.Y. 2015-16, the ground be decided similarly. 8. Ld DR on the other hand supported the order of lower authorities. She further submitted that the reliance placed by the assessee in the case of Kerala State Electricity Board Vs. DCIT (2010) 329 ITR 91 is misplaced because the Act under which the electricity duty was collected in the case of Kerala Electricity Board (supra) is different from the Act under which the present assessee had collected the electricity duty. She further relied on the decision of Hon'ble Gujar....
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....very c supplied by him the . duty so payable shall amount recoverable by the licensee in be a debt due by him. 16. Thus, as per section 4 of the such Act the duty is levied on the consumer of electricity specified in column 2 of the schedule and u/s.5 of the Act, the assessee is oblige to collect from the consumers above mentioned duty and pay to the Government at the time and in the manner as prescribed by the rules, thus we find that the Electricity Duty collected on behalf of the Government of Uttar Pradesh as their agent and credited to the State Government Account periodically as directed by the State Government. Sometimes, the duties also adjusted against the subsidy received by the assessee from the Government of Uttar Prade....
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....x duty which means the tax is the indicative of nature of liability. Therefore, the obligation of the assessee being an agent of Uttar Pradesh Government the amount collected by duty is in the fudiciary capacity, therefore, respectfully following the principle laid down in the aforesaid decision, we allow the appeal of the assessee on this ground." 10. Before us, no distinguishing feature in the facts of the case under the year under consideration and that of A.Y. 2015-16 has been pointed out by the Revenue but however Revenue has placed reliance on the decisions of Hon'ble Gujarat High Court cited herein above. It is a settled legal position that the rule of consistency is required to be followed by the Income-tax authorities and that i....
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.... 14. Aggrieved by the order of AO, assessee carried the matter before the CIT(A). The CIT(A) after considering the submissions of the assessee decided the issue in favour of the assessee by observing as under: "I have gone through the facts relating to this gorund and considered the assessmet order and the detailed submissions of the Ld AR on the issue. After having considered various judgments cited by the Ld AR and considering the question of applicability of provisions of TDS to the case of the assessee, I am of the considered opinion that the AO is in the wrong in applying the provisions of TDS to the present case. The crux of the matter being, that the provisions of TDS are not applicable on the wheeling/ transmission charges....