Dismissing the appeal of the revenue the Court held that; statutory levy under the VAT Act, 2005 is being collected by virtue of the powers entrusted by the State Government to the assessee. Entire collection is deposited in the Government Treasury of the State after deducting the actual expenditure incurred by the assessee. No real income accrues to the society. It is not necessary to get registration u/s 12AA of the Act.
PCIT v. H.P. Excise & Taxation Technical Service Agency (2019) 260 Taxman 302/173 DTR 13 (HP)(HC).Editorial: SLP of revenue is dismissed, PCIT v. H.P. Excise & Taxation Technical Service Agency ( 2019) 266 Taxman 280 (SC)
S. 2(24) : Income – Concept of real income- Statutory levy under the VAT Act, 2005 is being collected by virtue of the powers entrusted by the State Government to the assessee- entire collection is deposited in the Government Treasury of the State after deducting the actual expenditure incurred by the assessee- No real income accrues to the society-Not necessary to get registration u/s 12AA of the Act. [S. 4, 5, 12AA]