https://www.taxtmi.com/caselaws?id=797082 Unpaid GST collected from customers cannot be disallowed under Section 43B where it was neither debited to the profit and loss account nor claimed as a deduction; the GST addition was therefore deleted. Payments described as reimbursements of legal and professional expenses may be disallowed under Section 40(a)(ia) when no evidence establishes that they were genuine cost reimbursements without markup; the disallowance was sustained. The governing principle is that a payment-based disallowance cannot apply to a liability not claimed as a deduction in computing income. en-us Mon, 10 Aug 2026 00:00:00 +0530 Mon, 17 Aug 2026 08:38:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797082 Unpaid GST collected from customers cannot be disallowed under Section 43B where it was neither debited to the profit and loss account nor claimed as a deduction; the GST addition was therefore deleted. Payments described as reimbursements of legal and professional expenses may be disallowed under Section 40(a)(ia) when no evidence establishes that they were genuine cost reimbursements without markup; the disallowance was sustained. The governing principle is that a payment-based disallowance cannot apply to a liability not claimed as a deduction in computing income. Case-Laws Income Tax Mon, 10 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797082