Payment of Electricity Duty Deductible u/s 43B of Income Tax Act: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has recently, in an appeal filed before it, held that payment of electricity duty is deductible u/s 43B of Income Tax Act.

The aforesaid observation was made by the Delhi ITAT, when an appeal was filed before it by the assessee, Paschimanchal Vidyut Vitran Nigam Ltd., as against the order of the Commissioner of Income Tax (Appeals), (CIT) Meerut, dated 27.12.2017, for the assessment year 2013-14, in sustaining the disallowance made under section 43B of the Income Tax Act, 1961, in respect of Electricity Duty payable.

With Shri Pranav Gupta, C. A., the counsel for the assessee having submited that identical issue has been decided by the Tribunal in its own case for the assessment years 2014-15 and 2015-16,he placed copy of the order for the assessment year 2014-15 in ITA. No. 7146/Del/2017 dated 2.11.2020 wherein the Tribunal followed its earlier order passed for the assessment year 2015-16 in ITA. No. 4980/Del/2018 in assessee’s own case dated 16.01.2020 and allowed the appeal of the assessee.

However, Shri T. Kipgen, the [CIT] – D. R., on the other hand, placed reliance on the orders of the authorities below.

Hearing the opposing contentions of either sides and thereby perusing the materials available on record, the ITAT Panel consisting of Pradip Kumar Kedia, The Accountant Member, along with C.N Prasad, the Judicial Member, observed:

“Heard rival submissions and perused the orders of the authorities below. On perusal of the order of the Tribunal in the assessee’s own case for the assessment year 2014-15 in ITA. No. 7146/Del/2017 dated 2.11.2020, we find that identical issue has been decided by the Tribunal in assessee’sfavour for the immediately succeeding assessment years i.e., 2014-15 and 2015-16 holding that no disallowance is warranted under section 43B of the Act in respect of Electricity Duty payable by the assessee.”

Thus, allowing the assessee’s appeal, the Delhi ITAT held:

“For the same reasoning, as was held by the Tribunal for the assessment year 2014-15, we hold that the Assessing Officer is not justified in disallowing the Electricity Duty payable invoking the provisions of section 43B of the Act. Therefore, we set aside the order of the ld. CIT (Appeals) and allow the appeal of the assessee.”

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