|CORAM:||A.K. Sikri J., Rohinton Fali Nariman J.|
|CATCH WORDS:||actual payment, deduction|
|COUNSEL:||C. N. Sreekumar|
|DATE:||May 7, 2015 (Date of pronouncement)|
|DATE:||May 19, 2015 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|S. 43B: "Vend fee" paid by the assessee to the Government, even if of the nature of "privilege fee" falls within the expression "fee by whatever name called"|
(i) A reading of Section 43B after it was substituted by the Finance Act, 1988 with effect from 01.04.1989 shows that sub clause (a) in Section 43B has been considerably widened by the amendment by the addition of the words “by whatever name called”. It is clear, therefore, that to attract this section any sum that is payable whether it is called tax, duty, cess or fee or called by some other name, becomes a deduction allowable under the said Section provided that in the previous year, relevant to the assessment year, such sum should be actually paid by the assessee.
(ii) Even if the vend fee that is paid by the respondent to the State does not directly fall within the expression ‘fee’ contained in Section 43B(a), it would be a ‘fee’ by ‘whatever name called’, that is even if the vend fee is called a ‘privilege’ as has been held by the High Court in the judgment under appeal.