https://www.taxtmi.com/caselaws?id=247029 Service tax collected and shown as a liability, but neither debited to the profit and loss account nor claimed as a deduction, is not liable to disallowance under section 43B. Where an assessee follows the mercantile system, credits service tax to a separate account and remits it to the treasury without treating it as expenditure, the statutory disallowance provision does not apply. The Delhi High Court view noted in the text was followed, and the addition for service tax payable was deleted in favour of the assessee. en-us Thu, 17 Apr 2014 00:00:00 +0530 Wed, 30 Apr 2014 07:41:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=247029 Service tax collected and shown as a liability, but neither debited to the profit and loss account nor claimed as a deduction, is not liable to disallowance under section 43B. Where an assessee follows the mercantile system, credits service tax to a separate account and remits it to the treasury without treating it as expenditure, the statutory disallowance provision does not apply. The Delhi High Court view noted in the text was followed, and the addition for service tax payable was deleted in favour of the assessee. Case-Laws Income Tax Thu, 17 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=247029