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2013 (4) TMI 789 - AT - Income TaxAddition on account of unpaid liability of Service Tax u/s 43B - Held that:- Undisputedly the assessee has been following mercantile system of accounting and the liability of Service Tax is required to be paid only on the value of taxable service after its actual receipt in a particular month or quarter, as the case may be, and not on the amount billed by the assessee on the customers. It is also undisputed fact that Service Tax was not passed through profit & loss account nor was taken as part of income. The similar situation was examined by the Tribunal in the case of ACIT vs. Real Image Media Technologies (P) Ltd. (2007 (12) TMI 263 - ITAT MADRAS-C) and the Tribunal came to the conclusion that since the Service Tax was not payable by the assessee, the rigour of the provision of Section 43B could not be applied to the facts of the case. -Decided in favour of assessee.
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