TMI Blog2021 (3) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... loss account was never examined by the AO and the CIT(A) without giving an opportunity to the A.O. by placing reliance on the additional evidence allowed the appeal of the assessee? - HELD THAT:- AR does not have any grievance for remitting the issue to the A.O. to examine whether the unpaid service tax has been claimed as a deduction in the profit and loss account. This issue is restored to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against CIT(A) s order dated 03.04.2019. The relevant assessment year is 2012-2013. 2. The effective grounds raised by the Revenue, namely ground no.2 and 3 reads as follow:- 2. On the facts and circumstances of the case, whether the ld.CIT(A) is justified in deleting the addition of ₹ 4,35,91,191/- 3. On the facts and circumstances of the case, whether the ld.CIT(A) is justified i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e authority. Before the first appellate authority, the assessee contended that the service tax unpaid amounting to ₹ 4,35,91,191 was never claimed as an expenditure / deduction in the profit and loss account warranting disallowance u/s 43B of the I.T.Act. In this context, the assessee relied on the judgment of the Hon ble Bombay High Court in the case of CIT v. Knight Frank (India) Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion in the profit and loss account. In the absence of the same, the prescription mandated under Rule 46A of the I.T.Rules, has been violated. 6. The learned AR, on the other hand, submitted that the matter can be restored to the A.O., for the limited purpose of examination whether the unpaid service tax whether it is claimed as a deduction in the profit and loss account. It was stated by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is restored to the files of the A.O. The A.O. is directed to examine whether the assessee had claimed the unpaid service tax as an expenditure / deduction in the profit and loss account. In the event the same is not claimed as a deduction / expenditure, the A.O. shall not invoke the provisions of section 43B of the I.T.Act in view of the judgment of the Hon ble Bombay High Court in the case of CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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