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TMI Blog2024 (11) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... r Bench, Raipur (for short, 'the ITAT') in ITA No.195/RPR/2024, by which the appellant's appeal has been dismissed by the ITAT finding no merit. 2. The appeal was heard on the question of admission and was admitted for final hearing by formulating the following substantial question of law: - "Whether the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal are concurrently justified in upholding the disallowance of Rs. 62,32,262/- made under sub-clause (iv) of clause (a) of sub-section (1) of Section 143 of the Income Tax Act, 1961 by wrongly invoking the provisions contained in Section 43B of the IT Act and thereby recorded a finding perverse to the record?" 3. The aforesaid substantial question of law arises on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the appellant / assessee, would submit that the appellant did not claim any deduction of indirect taxes including VAT / other taxes in computing the income for the previous year and the appellant is following the exclusive method of accounting for indirect taxes as in the past. He would further submit that Section 43B of the IT Act mandates that a deduction otherwise allowable under the Act shall be allowed only in computing the income referred in Section 28 of that previous year in which such sum is actually paid by the assessee and since the appellant did not claim any deduction of indirect taxes in computing the income for the previous year i.e. the profit and loss account as expenditure, therefore, the CIT(A) and the ITAT, both, hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision and considering the said question, this Court held in paragraph 3 as under: - "3. The Assessing Authority, on the instant issue, noticed that the assessee's claim regarding the treatment of VAT in the Books of Accounts has been verified from the Books and that has been found to be in order. The Assessing Authority also found that VAT has been found separately accounted for in the Books of Accounts. The only ground on which the Assessing Authority refused to exclude the VAT collected by the dealer from the profit of business is on the basis that the VAT component was not paid off on or before the due date for furnishing the return in relation to the previous year under Section 139 (1) of the Income Tax Act. The First Appellate Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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