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2014 (3) TMI 957 - AT - Income TaxDisallowance u/s 43B - Held that:- An explanation was sought from the assessee in respect to non-payment of outstanding service tax as on 31.03.2008, and since it was found by the AO that an amount of ₹ 11,72,233/- (service-tax) which was due to be paid before the due date of filing of return of income had been remitted after the due date. To this query the assessee had explained that due to clerical mistake this amount was not added to the income of the assessee company at the time of filing of the income tax return. - explanation given by the assessee in any manner amounts to an admission to tax the said out-standing service tax. The claim of the assessee throughout was that the service tax expenditure has not been debited in P&L Account and since the assessee has not claimed the said amount as expenditure, the question of disallowance u/s 43B of the Act does not arise. We find force in the said contention of the ld AR and we set aside the order of the ld CIT(A) and remand the matter back to the file of the Assessing Officer with a direction to verify the said claim of the assessee that no such expenditure has been debited in its P&L Account, and if the Assessing Officer finds the said claim of the assessee as correct then the question of disallowance u/s 43B does not arise and consequently the Assessing Officer shall delete the said addition and pass fresh assessment order in this respect in accordance to law. - Decided in favour of assessee.
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