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2023 (3) TMI 1423 - AT - Income TaxAddition u/s. 43B on “VAT payable” - addition towards VAT tax liability not paid on or before “due date” for furnishing of his return of income for the year under consideration u/s. 139(1) - assessee who was accounting for his sales/turnover by following an “exclusive method” had not claimed deduction of the said amount in the profit and loss account for the year under consideration - HELD THAT:- Hon’ble High Court of Chhattisgarh in the case of Assistant Commissioner of Income Tax-1, Bhilai, Dist. Durg (C.G.) Vs. M/s. Ganapati Motors, Tax Case [2017 (4) TMI 1613 - CHHATTISGARH HIGH COURT] had held that in a case where the assessee had not charged VAT to its profit and loss account, then, despite the fact that the liability may still be unpaid it could not have been added u/s. 43B of the Act as the same was not claimed as a deduction in the books of accounts. No addition can be made of an assessee’s unpaid VAT tax liability that was not charged to the profit and loss account, there is substance in the claim of the Ld. AR that there was no justification for the A.O to have made an addition u/s. 43B of the amount of VAT payable as the same was not charged to the latters profit and loss account. Thus for the reason that as the aforesaid claim of the assessee was in conformity with the aforesaid judgment of M/s. Ganapati Motors (supra), therefore, the same by no means could have been dubbed as an incorrect claim and brought within the realm of the adjustments contemplated in clause (a) of Section 143(1) of the Act. Accordingly, the order of the CIT(Appeals) is set-aside and the addition made by the A.O of VAT payable is vacated. Addition towards GST not paid on or before “due date” for furnishing of his return of income for the year under consideration u/s. 139(1) - As argued assessee was accounting for his sales/turnover by following an “exclusive method” had not claimed deduction of the said amount in the profit and loss account for the year under consideration - HELD THAT:- As relying on own case A.Y.2017- 18 order of the CIT(Appeals) is set-aside and the addition made by the A.O on account of GST payable is vacated. Thus, the Ground of appeal No. 1 raised by the assessee is allowed in terms of my aforesaid observations.
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