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2012 (7) TMI 525 - AT - Income TaxDisallowance of service tax and interest paid as liability on account of service tax has not crystallized during the year under consideration - Held that:- Once the payment of service tax has been made during the year, it does not make any difference whether the same is under dispute before the service tax authorities. This issue is no more res integra as the Hon'ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd. v. Commissioner of Income-tax [1971 (8) TMI 10 - SUPREME COURT ] has decided this very question in the context of provision of Section 43B that for the claim of deduction of the sum paid against the liability of tax, duty, cess, fee, etc., the year of payment is relevant which is to be taken into account. The year in which the assessee incurred the liability to pay such tax, duty etc., has no relevance and cannot be linked in the matter of giving benefit of deduction under Section 43B - the amount of service tax along with interest paid by the assessee is allowable in view of the provisions of Section 43B - in favour of assessee. Enhancement in the book value of shares - Sham transaction - cost of acquisition of the value of the investment of shares - held that:- This is a transactions solely between the parent company and the holding company, the same cannot be treated as a sham transaction as the shares have been transferred purely on the book value disclosed earlier. - addition made on account of short term capital gain by reducing the value of cost of acquisition of shares is uncalled for.
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