TMI Blog2012 (8) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... ny is promoted by the Department of Biotechnology, Ministry of Science and Technology, Govt. of India and financed by the All India Financial Institutions. The company provides assistance in execution of various projects of Department of Biotechnology, Ministry of Science and Technology; and Ministry of Environment and Forests other govt. departments. The Assessing Officer made a disallowance of ₹ 4,71,282/- u/s 40A(3) of the I.T. Act and made another addition on account of unpaid service tax u/s 43B of ₹ 41,59,667/-. 4. In respect of first addition it was submitted before CIT(A) that assessee company has to organize meeting of various commodities formed by different govt. departments or organize workshops across the countr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand, ld. AR of the assessee stated that all the details were filed. Sample copies were also filed proving that single payment does not exceed ₹ 20,000/-. Sample copies required by the Bench were filed here before the Tribunal also. 8. After considering the submissions and perusing the material on record, we find that CIT(A) was justified in allowing the issue in favour of the assessee. Various copies on account of various expenses, reimbursed by the assessee, are placed on record which were filed on requirement by the Tribunal and they show that no single payment exceed ₹ 20,000/-. Therefore, they are not hit by the provisions of sec. 40A(3). This is a factual finding given by CIT(A) which is ascertainable from the record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt). 10. After considering the submissions and perusing the material on record, CIT(A) found that Assessing Officer was not justified in making disallowance u/s 43B as on Service Tax the provisions of sec. 43B are not applicable. Accordingly, he deleted the addition. 11. Ld. DR placed reliance on the order of Assessing Officer . It was further submitted that though as per the decision of Hon ble High Court the provisions of sec. 43B are not attracted on Service Tax, the segregation of receipt received and receivable was not filed. 12. In reply, the ld. AR of the assessee stated that the payments were not received and therefore they were shown as receivable and they were not part of trading receipt as they have not been shown in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) of Section 43B because that clause specifically mentions sum payable by the Assessee . It was further held that the Assessee is never allowed deduction on account of service tax which is collected on behalf of the Govt. and paid to the Govt. accordingly. Therefore, a service provider is merely acting as an agent of the Govt. and is not entitled to claim deduction on account of service tax . Similarly, the Hon ble High Court of Delhi in the case of CIT Vs. Noble Hewitt (I) (P) Ltd. [305 ITR 324] held that non deposit of service tax cannot be added to the income of the assessee u/s 43B of the income tax Act since the assessee did not debit the service tax to the P L Account as an expenditure nor did the assessee claim an expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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