Law:

Section:

Section 115JB of the Income-tax Act, 1961 - Minimum alternate tax - Assessment years 2002-03 to 2005-06 - Whether section 115JB would be applicable to assessee, a statutory corporation constituted by notification of State of Kerala, pursuant to powers vested in it by virtue of section 5 of Electricity Supply Act, 1948 - Held, no Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment - Assessment years 2002-03 to 2005-06 - Whether under section 43B liability to pay and corresponding authority of State to collect tax (flowing from a Statute) is essentially in realm of rights of sovereign, whereas obligation of agent to account for and pay amounts collected by him on behalf of principal is purely fiduciary - Held, yes - Whether nature of obligation continues to be fiduciary even in a case wherein relationship of principal and agent is created by a Statute - Held, yes - Whether when section 43B(a) speaks of sum payable by way of tax, etc., said provision deals with amounts payable to sovereign qua sovereign, but not amounts payable to sovereign qua principal - Held, yes - Assessee was a statutory corporation constituted under section 5 of Electricity Supply Act, 1948 - During relevant assessment year, it collected tax payable by consumers of electricity as agent of State Government - As amount remained in hands of assessee till date of assessments, Assessing Officer, relying upon section 43B, treated said amount as assessee's income - Whether section 43B could be invoked for making assessment of liability of assessee-corporation under Act with regard to amount collected by it as an agent of State of Kerala towards tax payable by consumers of electricity to State - Held, no FACTS The assessee was a statutory corporation constituted by the notification of the State of Kerala, pursuant to the powers vested in it by virtue of section 5 of the Electricity Supply Act, 1948. During the relevant assessment years, it collected certain amount from various consumers of electricity supplied by it for the duty payable by them under section 4 of the Kerala State Electricity Duty Act. The amount, admittedly,…

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