Income Tax Act, 1961 – Ss. 143 (3), 40 – Surcharge on Taxes Act, 1957 (Kerala) – S. 3 (1) – General Sales Tax Act, 1963 (Kerala) – S. 5 (1) (b) – Assessment of Income – Amounts not deductible – Levy of surcharge on sales and purchase taxes.
The gallonage fee, licence fee and shop rental (kist) with respect to FL9 and FL1 licences granted to the appellant will, squarely fall within the purview of Section 40(a)(iib) of the Income tax Act, 1961. The surcharge on sales tax and turnover tax, is not a fee or charge coming within the scope of Section 40(a)(iib)(A) or 40(a)(iib)(B), as such same is not an amount which can be disallowed under the said provision and disallowance made in this regard is rightly set aside by the High Court.
A surcharge on a tax is nothing but the enhancement of the tax.
Interpretation is to be in the manner which will subserve and promote the object and intention behind the legislation.
Case Law Reference
- Jalkal Vibhag Nagar Nigam v. Pradeshiya Industrial and Investment Corporation, 2021 SCC OnLine SC 960
- DLF Qutab Enclave Complex Educational Charitable Trust v. State of Haryana, (2003) 5 SCC 622
- Kailash Nath Agarwal v. Pradeshiya Industrial & Investment Corporation of U.P. Ltd., (2003) 4 SCC 305
- Shri Ishar Alloy Steels Ltd. v. Jayaswals Neco Ltd., (2001) 3 SCC 609
- Sarojini Tea Co. Ltd. v. Collector, Dibrugarh, (1992) 2 SCC 156
- C.I.T. v. K. Srinivasan, (1972) 4 SCC 526
Case Number : CIVIL APPEAL NO. 11 OF 2022 [Arising out of S.L.P.(C) No.12859 of 2020], W I T H CIVIL APPEAL NO. 12 OF 2022 [Arising out of S.L.P.(C) No.12162 of 2020] CIVIL APPEAL NO. 13 OF 2022 [Arising out of S.L.P.(C) No.12768 of 2020] AND CIVIL APPEAL NO. 14 OF 2022 [Arising out of S.L.P.(C) No.14150 of 2020]
Hon’ble Mr. Justice R. Subhash Reddy pronounced the reportable Judgment of the Bench comprising His Lordship and Hon’ble Mr. Justice Hrishikesh Roy.
For Petitioner(s) Mrs. Anil Katiyar, AOR Mr. Jogy Scaria, AOR For Respondent(s) Mr. Jogy Scaria, AOR Mr. N. Venkataraman, ASG Mr. Raj Bahadur Yadav, AOR
Case Link : https://pdf.caselaw.in/sc/2022/01/1088/