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2014 (4) TMI 998 - AT - Income TaxAddition on account of service tax payable – Held that:- The assessee has been following mercantile system of accounting and service tax collected by it is directly credited to the Service Tax Account from where the payments are deposited with treasury from time to time - No part of receipt of service tax has been taken to the P&L A/c neither any expense on account of deposit of service tax had been debited in the P&L A/c - The AO and CIT(A) had relied upon the provisions of section 43B for making addition – Relying upon COMMISSIONER OF INCOME TAX Versus NOBLE AND HEWITT (I) P. LTD [2007 (9) TMI 238 - DELHI HIGH COURT] - since the assessee did not debit the amount to the P&L A/c as an expenditure nor claim any deduction in respect of the amount and considering that the assessee was following the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise – Decided in favour of Assessee.
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