AO disallowed unpaid interest of Rs. 2,56,43,688 on a loan taken from the World Bank under section 43B, which disallowance was upheld by CIT(A); further, a sum of Rs. 149.53 crores pertaining to electricity duty collected by the assessee, a power distribution company, from consumers under the Rajasthan Electricity (Duty) Act, 1962, but not remitted to the State Government, was disallowed under section 43B(a), which disallowance was deleted by CIT(A). On appeal, the Tribunal held that clauses (d), (da) and (e) of section 43B cover only interest payable to specific financial institutions, NBFC, scheduled banks or co-operative banks as specified in Explanation 4 thereto, and since neither the State Government nor the World Bank fell within any of these categories, the interest payable on such loans was not covered by section 43B, and the disallowance was accordingly deleted. It was further held that there was no infirmity in the order of the CIT(A) deleting the disallowance of electricity duty, as the assessee had no independent liability and merely acted as a conduit between the consumers and the Government. (AY.2016-17)