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2018 (9) TMI 799 - HC - Income TaxAddition u/s 43B - whether service tax though debited to the profit and loss account but not credited to the Central Government cannot be disallowed u/s 43B - Held that:- When these appeals were argued before us, our attention was invited by Mr. Jasani to a Division Bench Judgment of this Court in Commissioner of Income Tax v. Ovira Logistics P. Ltd.[2015 (4) TMI 684 - BOMBAY HIGH COURT]. Mr. Jasani submits that earlier this very controversy was dealt with and the Revenue's appeal was dismissed. With the assistance of both sides, we have perused this Judgment and we find that it dealt with an identical issue. This Court held that Section 43B does not contemplate liability to pay service tax before actual receipt of the funds in the account of the assessee. Hence the liability to pay service tax into the Treasury will arise only upon the assessee receiving the funds and not otherwise. Thus the consideration has to be actually received and thereupon the liability will arise. No conclusion contravening the above has been brought to our notice by the Revenue. In fact, Mr. Pinto was fair enough to bring to our notice this Judgment. No substantial question of law.
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