TaxTMI 
TaxTMI 
2022 (12) TMI 1351
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 40A(3) of the Act. 3. The ld. AR, Dr. Milind Bhusari submits that the CPC did not consider the reply of assessee regarding the intimation towards cash payment exceeding Rs.10,000/-. He submits that the assessee paid electricity bills to Spanco Nagpur Discon Ltd. (SNDL) who is agent of Government of Maharashtra. He argued the said payment is covered under Rule 6DD(b). The assessee filed an agreement between Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) and SNDL in support of its claim that SNDL is an agent of Government of Maharashtra for distribution of electricity in Nagpur. He further submits that the payments made by the assessee to the agent of Government of Maharashtra is covered under Rule 6DD(b) and vehemently argue....
X X X X Extracts X X X X
X X X X Extracts X X X X
....will operate in the case of assessee covering the cash payments made to MSRTC. The ld. AR argued that the finding of this Tribunal in the case of Smt. Sapna Sanjay Raisoni (supra) is applicable to the facts on hand as the MSRTC stands on the same footing of MSEDCL. 5. The ld. DR, Shri G.J. Ninawe vehemently argued that the MSEDCL is a company registered under the Companies Act but it is not a Government body. The said SNDL is also a limited company assigned to central division of Mumbai for its assessment. He argued when it is a company the provisions u/s. 40A(3) is attracted to the disallowance as confirmed by the CIT(A), is justified. Further, he argued the Rule 6DD(b) is not applicable as MSEDCL and SNDL are companies but not Government....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orporate entity under the Maharashtra Government incorporated in 2005 restructuring the erstwhile Maharashtra State Electricity Board to distribute electricity from the end point of transmission to the end consumers. Further, it is observed that the MSEDCL is a public company in the category of State Government Company with the main objectives of developing, operating and maintenance of distribution system for supplying electricity to the consumers in its area of supply. Further, we note that it is a deemed distribution licensee u/s. 14 of the Electricity Act, 2003 in order to achieve carrying out the supply of power to the end users as well as maintaining the wire business for supply of such power. 8. The MSEDCL entered into an agreement ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a and the order of Tribunal is applicable to the facts on hand. The ld. DR argued that the SNDL was assessed in the Central Division of Mumbai, cannot be considered as "State". The ld. AR drew our attention to the decision of Hon'ble Supreme Court in the case of Rajasthan State Electricity Board reported in 1967 AIR 1857, on careful reading of the said decision, we note that the Hon'ble Supreme Court was pleased to explain the "other authorities" in Article 12, will, include all constitutional or statutory authorities on whom powers are conferred by law. Further, it is not at all material that some of the powers conferred may be for the purpose of carrying on commercial activities. The State, is itself envisaged as having the right to carry....