TMI Blog2024 (3) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... of income appears to be correct. The decision of Hon ble Apex Court in case of Chowringhi Sales Bureau Pvt. Ltd. [ 1972 (10) TMI 4 - SUPREME COURT] will not be applicable as in the present case, assessee had given the details of the current liabilities and not estimated the same and was not debited the same as an expenditure in profit and loss account and not claimed any deduction to that effect. But since the assessee had paid the said amount prior to filing of the return of income, the decision of Hon ble Delhi High Court will be applicable in case of assessee as the ratio laid down by the Noble Hawitt (I)(P) Ltd. [ 2007 (9) TMI 238 - DELHI HIGH COURT] will be squarely applicable in the present case. Thus, the appeal of the assessee is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s disallowance made observation that the assessee was liable to get his books of accounts audited u/s. 44AB of the Income Tax, 1961 and the assessee also got his books of accounts audited u/s. 44AB of the Income Tax Act, 1961. The Assessing Officer observed that the duties and taxes payable on (GST) as on 31-03-2020 was Rs. 67,47,034/- as per the audited financials of the assessee. While filing the audit report u/s. 44AB of the Act on 11-01-2021 an amount of GST payable to Rs. 67,47,034/- was unpaid and hence the auditor reported the same in the clause 26(i)(B)(b) duties and taxes not paid on or before the date of audit report. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of providing civil construction services on the contract basis. The assessee has collected the GST from his client on behalf of the Government and the same is paid to the Government exchequer before filing the due date of the return of income to the extent of Rs. 53,50,546/-. On the collection of such GST amount as shown liability in his books of accounts which was subsequently paid to the Government along with interest on delayed payment. The ld. A.R. submitted that the assessee was neither showing any income on account of GST collected from the assessee nor it was claiming any expenditure on account of such GST. As such, the assessee has showing the amount of GST collected from the customers as liability without creating the same in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in respect of amount. In fact, the assessee has treated the same as current liabilities and provisions and also given the description under Schedule 7 regarding duties and taxes. Thus, the contention of the ld. A.R. that the provisions of section 43B is not applicable to the assessee as the assessee has paid the GST amount before filing of the return of income appears to be correct. The decision of Hon ble Apex Court in case of Chowringhi Sales Bureau Pvt. Ltd. (supra) will not be applicable as in the present case, assessee had given the details of the current liabilities and not estimated the same and was not debited the same as an expenditure in profit and loss account and not claimed any deduction to that effect. But since the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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