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2022 (7) TMI 1006 - AT - Income TaxDelayed employees contribution to EPF’ - Deposits before the due date of filling ROI - HELD THAT:- When the employees share of contribution towards EPF had been deposited by the assessee prior to the “due date” of filing of his return of income for the year under consideration, therefore, no disallowance of the same was called for in his hands. We find that the aforesaid issue in question is squarely covered by a recent order of the Tribunal in the case of M/s Ind Synergy Limited [2022 (4) TMI 36 - ITAT RAIPUR] Accordingly, as the assessee in the case before us had deposited the employees share of contribution of EPF much prior to the “due date” of filing of his return of income as contemplated in Sec. 139(1) of the Act i.e 30.09.2012, therefore, the same as per the concession provided in “Proviso” to Sec. 43B(b) would not be liable for any disallowance. - Decided in favour of assessee. Addition on account of service tax that was collected but not paid by treating the same as his business income under Sec. 28 r.w.s 5 of the Act - HELD THAT:- As during the year consideration i.e AY 201213 Sec. 145A(a)(ii) only contemplated valuation of purchase and sale of goods and inventory and thus covered cases where the amount of tax, duty, cess or fee was actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation and had no bearing to rendering of services, therefore, no infirmity emerges from the accounting of the contract receipts by the assessee on the basis of exclusion method (i.e net of service-tax), which as observed by us hereinabove had consistently been followed by it since last many years. We, thus, in terms of our aforesaid observations set-aside the order of the CIT(Appeals) who had held that the accounting of the contract receipts by the assessee by adopting the exclusion method (i.e net of service-tax) was not proper. Grievance of the assessee that as he had not claimed any deduction of the amount of service-tax, therefore, there could be no justification for disallowance of the same by triggering the provisions of Sec. 43B - As we have approved the exclusion method (i.e net of service-tax) of accounting of contract receipts by the assessee, therefore, the adjudication of the present issue, i.e, disallowance of the unpaid amount of service-tax would rest on the edifice of our said observation. As observed by us hereinabove the disallowance under Sec. 43B presupposes a claim of deduction by the assessee. However, as in the present case before us, as averred by the ld. AR, and rightly so, now when the assessee had not claimed any deduction for the amount of the service-tax, thus, the failure on his part to deposit the same in the government account within the stipulated time period would not entail or lead to any disallowance of the said amount. We, thus, in terms of our aforesaid observations taking cognizance of the fact that the assessee had not claimed any deduction for the amount of service-tax while determining his taxable income, vacate the disallowance of the same u/s 43B of the Act by the lower authorities. Accordingly, in terms of our aforesaid deliberations we herein set-aside the order of the CIT(Appeals) and vacate the addition/disallowance of the unpaid amount of service-tax so made by the AO. - Decided in favour of assessee.
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