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2018 (5) TMI 624 - AT - Income TaxDisallowance on account of service tax payable u/s 43B - assessee has not debited the expenditure as service tax to the profit and loss account - recording of turnover of services without inclusion of service tax in violation of section 145A - Held that:- Assessee has to pay service tax within due date as set out under the above provisions either by way of cash/cheque or by way of availing CENVAT credit as per Rules as stated above, but the assessee did not do so. The liability of service tax had also arisen as per the point of Taxation Rules. As per method of accounting, the assessee has also not included the service tax received by him in the turnover. In fact, the assessee was legally obliged to declare its turnover inclusive of service tax received. The assessee cannot be exonerated from its liability by saying that he accounted for the service tax received separately. The ld. CIT(A) has rightly disallowed the same u/s. 43B of the IT Act. - Decided against assessee.
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