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2021 (6) TMI 508 - AT - Income TaxAddition of outstanding service tax liability u/s 43B - whether the provisions of sec.43B is attracted when no deduction was claimed by the assessee? - assessee filed a rectification application before Ld. CIT(A) submitting that the assessee has not claimed the service tax liability as deduction in the profit & loss account and hence, the provisions of section 43B of the Act would not apply - HELD THAT:- The co-ordinate bench, in the case of N.R Kumaraswamy [2018 (5) TMI 1962 - ITAT BANGALORE] has taken the view that the provisions of sec.43B are not attracted, if the tax liability is not claimed as deduction. The coordinate bench has taken support of the decision rendered by Hon’ble Bombay High Court in the case of “Knight & Frank (India)(P) Ltd [2016 (8) TMI 1096 - BOMBAY HIGH COURT]. We also notice that the Ahmedabad bench of Tribunal has taken an identical view in the case of SDCE Projects (P) Ltd [2019 (10) TMI 309 - ITAT AHMEDABAD] We notice that in NOBLE AND HEWITT (I) P. LTD. [2007 (9) TMI 238 - DELHI HIGH COURT] has considered the decision rendered by Hon’ble Supreme Court in the case of Chowringhee Sales Bureau (Pvt.) Ltd [1960 (11) TMI 99 - CALCUTTA HIGH COURT] and then expressed the view that the provisions of sec.43B are not attracted, if the particular item is not claimed as deduction. We hold that the outstanding service tax liability is not liable to be added u/s 43B of the Act, since the same has not been claimed as deduction. Accordingly, we set aside the order passed by Ld CIT(A) and direct the AO to delete the impugned addition. - Decided in favour of assessee.
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