Ita/25/2008 Of The Commissioner Of Income-Tax,Tvm v. M/S.kerala State Electricity Board,Tvm

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN FRIDAY, THE 27TH FEBRUARY 2009 / 8TH PHALGUNA 1930 ITA.No. 25 of 2008() -------------------- ITA.N.O.824/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT:- ----------------------------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHPURAM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES) SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENT(S): --------------- KERALA STATE ELCTRICITY BOARD, THIRUVANANTHAPURAM. THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 27/02/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR &K.SURENDRA MOHAN, JJ. .................................................................... I.T. Appeal No.25 of 2008 .................................................................... Dated this the 27th day of February, 2009. JUDGMENT Ramachandran Nair, J. The question raised in the appeal filed by the Revenue is aboutdisallowance under Section 43B, of the electricity duty collected byKSEB that was payable to the Government but in fact, not paid. Wedo not think the transaction between a Government organisation andthe Government is hit by Section 43B of the Income Tax Act becausein the connected cases we found Government allowed adjustment bythe KSEB against amounts otherwise due from Government to KSEB.We, therefore, dismiss the appeal filed by the Revenue. C.N.RAMACHANDRAN NAIRJudge K.SURENDRA MOHANJudge