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2020 (2) TMI 1536 - AT - Income TaxAddition u/s 43B - unpaid service tax liability - HELD THAT:- Section 43B provides that if any sum is payable by an assessee by way of tax, duty, cess or fees by whatever name called under any law for the time being in force, then such amounts shall be allowed to the assessee irrespective of the previous year in which the liability to pay such sum incurred by the assessee, according to the accounting method regularly employed by him, only in computing the income in the year in which such sum is actually paid by him. In other words, if these statutory levies were required to be claimed by the assessee, then the deduction of such amount could be claimed in the year in which they were actually paid. In the present case, the assessee has not paid service tax liability. Thus, it cannot claim deduction. The assessee has not claimed the deduction in its account. Therefore, nothing was to be disallowed by the AO. By this exercise, the AO has made double additions; viz (i) assessee himself has not claimed the deduction, and (ii) the AO has added back this amount. CIT(A) has rightly relied upon the decision of CIT Vs. Noble & Hewitt (I) P Ltd. [2007 (9) TMI 238 - DELHI HIGH COURT] and deleted the addition. - Decided in favour of assessee.
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