Star Paper Mills Limited, Kolkata vs Dcit, Cir. 4(2), Kolkata on 26 October, 2021
We note that in the
cases of CIT Vs Mohanlal Mishrilal & Sons (supra) & CIT Vs Mansukhlal
Prahajibhai & Co. (supra), the Court had allowed the claim of mandi fees on
mercantile basis, by categorically observing that, the amendment bringing 'fees' under
the fold of Section 43B had been brought in by the Finance Act, 1988 w.e.f. from
01.04.1989 and onwards, and hence the amendment could not be applied to these
cases as the assessment years involved were prior to AY 1989-90. In the facts of the
present case, the assessment year in question is AY 2016-17. Having regard to the
provisions of Section 43B(1)(a) of the Act as applicable to this AY, we hold that
'fees' is indeed included within the fold of Section 43B of the Act and is therefore
32
I.T.A. No.127/Kol/2021
Assessment Year: 2016-17
Star Paper Mills Limited
allowable only on actual payment basis. For the reasons as aforesaid, this ground of
appeal therefore stands dismissed.