Appeal allowed: No deduction for service tax under section 43B.

The Tribunal allowed the appeal, ruling in favor of the assessee regarding the addition under section 43B for non-payment of service tax. Citing relevant case law, the Tribunal held that the service provider cannot claim a deduction for service tax, thus deeming the addition under section 43B unjustified. The decision was based on precedents like ACIT vs. Real Image Media Tech. (P) Ltd. and CIT vs. Noble and Hewitt (I) P. Ltd., ultimately resulting in the allowance of the appeal. The order was issued on 4/4/2012 by Shri T.R. Sood and Shri Vijay Pal Rao.

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Issues involved: Addition u/s.43B for non-payment of service tax.

Summary:
The appeal raised various grounds, with the main issue being the addition u/s.43B for non-payment of service tax. The assessee's counsel argued that the issue was similar to previous decisions by the Chennai Bench of the Tribunal and the Delhi High Court. On the other hand, the Departmental Representative (DR) relied on the CIT(A)'s order. After careful consideration, the Tribunal referred to the case law of ACIT vs. Real Image Media Tech. (P) Ltd. and CIT vs. Noble and Hewitt (I) P. Ltd. The Tribunal noted that the service provider is not entitled to claim a deduction on account of service tax, and therefore, the addition u/s.43B was not justified. Following the precedents, the Tribunal decided the issue in favor of the assessee, resulting in the allowance of the appeal.

The order was pronounced on 4/4/2012 by Shri T.R. Sood, Accountant Member, and Shri Vijay Pal Rao, Judicial Member.

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