9911796707
TMI Blog2012 (4) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... .S.Sunder Singh. ORDER Per T.R. SOOD, AM: In this appeal various grounds have been raised but at the time of hearing it was submitted by the Ld. Counsel of the assessee that basically the issue is regarding addition u/s.43B for non payment of service tax. 2. THE Ld. Counsel of the assessee submitted that the issue is squarely covered by the decision of the Chennai Bench of the Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not being routed through profit and loss account and that assessee had shown liability towards service tax in its balance-sheet - Assessing Officer, taking view that service tax collected but not paid to Government account was revenue receipt, made addition to assessee's income - On appeal, Commissioner (Appeals) deleted addition holding that for applicability of section 43B, claim should be fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int in its favour. We are unable to agree. In that case, it was held that the liability to pay sales tax arose the moment a sale or purchase was effected and if an assessee was maintaining accounts on the mercantile system it would be entitled to deduction of the estimated liability of sales tax, even though such sales tax had not been paid to the sales tax authorities. The question there concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount and considering that the assessee is following the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise. 7. Learned counsel for the Revenue submits that the assessee has sought to evade tax under the mercantile system of accounting. We are of the view that it is not for the Revenue authorities to tell the assessee how to maintain its accou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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