2007 (9) TMI 238 - DELHI HIGH COURT

Service tax collected – assessee neither claimed any deduction nor debited the amount in the P/L A/c– AO & CIT disallowed the amount and added it back to the income of assessee – held that since the assessee did not debit the amount to the Profit and Loss A/c as an expenditure nor did the assessee claim any deduction in respect of the amount and considering that the assessee is following the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise