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2016 (3) TMI 360 - AT - Income TaxDisallowance by contravention of provisions of Section 43B - service tax due had not been deposited - Held that:- The assessee has not debited service tax in P&L account, which has been shown in service tax account separately. The Hon’ble Delhi High Court in the case of CIT Vs. Noble Hewitt (I) (P) Ltd. (2007 (9) TMI 238 - DELHI HIGH COURT ) has held that the assessee followed mercantile system of accounting and collected service tax. The amount of service tax has not been debited in the P&L account as also not claimed as deduction, therefore, amount could not be disallowed. Further in the case of CIT Vs. M/s Calibre Personnel Services Pvt. Ltd. (2015 (2) TMI 587 - BOMBAY HIGH COURT ) by considering the Hon’ble Delhi High Court decision in the case of CIT Vs. Noble Hewitt (I) (P) Ltd. (supra) wherein both the issues i.e. Section 43B and issue of mercantile system of accounting had also been considered and held that in case of assessee, Section 43B no disallowance can be made. The Hon'ble Supreme Court has also dismissed the SLP filed by the department in the case of CIT Vs. M/s Calibre Personnel Services Pvt. Ltd. (supra). By respectfully following the decision of both the Hon’ble Courts, we delete the addition confirmed by the ld CIT(A). - Decided in favour of assessee
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