2021 (12) TMI 1293

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..... uld be made in intimation u/s 143(1)(a). 4. That when the amount of GST payable was not routed through the profit & loss account the same was not liable to be disallowed and added in the income. 5. That the order passed is against the merit, circumstances and legal aspects of the case." 2. Learned counsel for the assessee, at the outset, submitted that in this case the addition has been made on account of GST payable which was outstanding in the balance sheet but which was not routed through profit & loss account. It was submitted that CPC (AO) added this amount in income as disallowable u/s 43B of the Act. Learned counsel for the assessee submitted that the said outstanding amount of GST was not routed through the profit & loss accoun .....

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..... o such expenditure, representing GST, has been debited to the profit & loss account. The extract of auditor's report in Form 3CB is placed at pages 2 and 3 of the paper book wherein at page 3, auditors have specifically answered as "NO" to the question as to whether any Sales Tax/GST, Customs Duty, Excise Duty or any indirect tax has been passed through profit & loss account. In response to intimation u/s 143(1), the assessee submitted that GST payable was not routed through the profit & loss account and therefore, disallowance u/s 43B was not warranted but these contentions were not accepted. The assessee also filed application u/s 154 mentioning the facts of the case. However, the application u/s 154 was also rejected and aggrieved by the .....

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..... ions of the sales tax law, the amount was payable in the next month and the same was actually paid in the month of November, 1983. The addition is on the finding that the assessee had not claimed the disputed amount as deduction nor has it charged that amount to the profit and loss account. On this factual position, the Tribunal held that there was no question of disallowing the amount taken to the balance-sheet on the liabilities side and, in these circumstances, the question of any "add back" from the profit and loss account did not arise. The Tribunal, therefore, refused to interfere with the order of the AAC. No error in the approach taken by the Tribunal was pointed out to us. Accordingly, the application under s. 256(2) is rejected." .....

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