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2019 (8) TMI 1412 - AT - Income TaxAddition of service tax payable u/s 43B - not debited to the P&L A/c - HELD THAT:- We find that u/s 43B, certain deductions are allowable on actual payment. By not debiting the service tax to the P&L A/c, the assessee has not claimed it as an expenditure. Therefore, the disallowance of the same u/s 43B of the Act would not arise. In the case before us, the AO is not disallowing the expenditure, but is bringing it to tax, which is not the purpose of the section.Therefore, the addition made u/s 43B is deleted. Disallowance of interest payment u/s 40(a)(ia) - an assessee in default” u/s 201(1) - second proviso to section 40(a)(ia) - HELD THAT:- As w.e.f. 1.4.2013, 2nd proviso has been appended to section 40(a)(ia) according to which where an assessee is not deemed to be an assessee in default under the 1st proviso to sub-section 1 of section 201, it shall be deemed that the assessee has deducted and paid tax on such sum on the date of furnishing of such income by the recipient in the said proviso. It is the case of the assessee that the recipient has offered the income to tax in his hands and therefore, the proviso to section 201(1) applies and the assessee cannot be deemed to be an assessee in default. Admittedly, the assessee has not been treated as an assessee in default u/s 201(1) and the proviso to section 201(1) has been held to be retrospectively applicable. Therefore disallowance u/s 40(a)(ia) cannot be made subject to verification that the recipient has offered the income to tax in its hands. Thus, the ground is allowed for statistical purposes. Addition u/s 14A r.w.Rule 8D - HELD THAT:- This issue is covered in favour of the assessee by the decision of the various Courts particularly the Hon'ble Delhi High Court in the case of Cheminvest Limited vs Commissioner Of Income Tax-Vi [2015 (9) TMI 238 - DELHI HIGH COURT] and also the decisions of the Coordinate Benches of this Tribunal to which I am also a signatory. Respectfully following the same, I delete the disallowance made u/s 14A of the Act. Payment of ESI and PF on account of disallowance u/s 36(1)(va) i.e. employees contribution - HELD THAT:- Assessee has made the payment before filing of the return of income and as held the disallowance u/s 36(1)(va) is deleted.
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