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TMI Blog2022 (12) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... eged by A.O. with regard to the claim of deduction in respect of exercise duty and service tax claimed by the assessee as deduction permissible under the law and consequently the rectification order as passed by A.O. u/s. 154 of the I.T Act and sustained by CIT(A) is arbitrary, unjust and bad in law. 2. That without prejudice to Ground no. 1 above, the exercise duty and service tax are allowable deduction in the year of their payment u/s. 43B of the IT Act irrespective of the year they relate and consequently the disallowance of deduction of Rs. 35,11,225/- as claimed by the assessee, is arbitrary, unjust and contrary to the provisions of the Act. 3. The Ld. Counsel of the assessee did not pressed legal ground no. 1 and the same is dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances as well as the law, it is clear that whatever the amount of tax in the form of service tax, differential excise duty and any interest on the delayed payment of service tax, all are admissible deduction under the law and the Assessing Officer cannot disallow the deduction us 154 of the Act because there is no apparent and glaring mistake on facts and law. If they want to rectify an order, though not admitted by the assessee, the Assessing Officer has not only to investigate the facts but even the law and the principle of commercial expediency which requires a long drawn process of reasoning which is not permissible u/s 154 of the Act. 10. That in the case of Tupperware India (P) Ltd. vs. CIT in 234 Taxman 56 (Del), the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he orders of the authorities below submitted that the Assessing Officer was right in invoking provisions of section 154 of the Act, by passing order dated 29.03.2017 making addition of Rs. 33,69,900/- which was charged on project bills and Rs. 1,41,325/- of claimed excise duty. The Ld. Senior D.R. further supporting the first appellate order submitted that the A.O was a very well empowered to invoke of provision section 154 of the Act and making the addition in the hands of the assessee. 6. Placing rejoinder to the above submissions the Ld. Counsel of the assessee preciously reiterated the written submissions and submitted that the assessee is a service provider to Vishakhapatnam Steel Plant and liability to pay make payment of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot pay partial excise duty to the assessee and assessee after paying to the Government debited in P&L account claiming as revenue expenditure which is also allowable as business expenditure under commercial expediency u/s. 37(1) of the Act. Finally Ld. Counsel submitted that the liability to pay service tax as well as excise duty was primarily on the assessee under the law though it may be reimburse by the clients but it remains the liability of the assessee whether reimburse by the clients or not. In the present case impugned amounts of service tax and excise duty was paid by the assessee to the exchequer but could not reimburse from the clients due to reasons beyond control of the assessee. Therefore the assessee is entitled to claim it a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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