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2023 (3) TMI 766 - AT - Income TaxAddition u/s. 43B of the VAT payable - VAT tax liability was not paid on or before “due date” for furnishing of her return of income for the year under consideration u/s.139(1) - HELD THAT:- Hon’ble High Court of Chhattisgarh in the case of Assistant Commissioner of Income Tax-1, Bhilai, Dist. Durg (C.G.) Vs. M/s. Ganapati Motors, Tax Case [2017 (4) TMI 1613 - CHHATTISGARH HIGH COURT] had held, that in a case where the assessee had not charged VAT to its profit and loss account, then, despite the fact that the liability may still be unpaid it could not have been added u/s.43B of the Act as the same was not claimed as a deduction in the books of accounts. No addition can be made of an assessee’s unpaid VAT tax liability which was not charged to the profit and loss account, there is substance in the claim of the Ld. AR that there was no justification for the A.O to have disallowed u/s.43B VAT payable as the same was not charged to the latters profit and loss account. We say so, for the reason that as the aforesaid claim of the assessee was in conformity with the aforesaid judgment of the Hon’ble Jurisdictional High Court in the case of M/s. Ganapati Motors [2017 (4) TMI 1613 - CHHATTISGARH HIGH COURT] therefore, the same by no means could have been dubbed as an incorrect claim and brought within the realm of the adjustments contemplated in clause (a) of Section 143(1) of the Act. Accordingly, the order of the CIT(Appeals) is set-aside and the addition made by the A.O of VAT payable is vacated. Appeal of assessee allowed.
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