2014 (4) TMI 998

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Per TS Kapoor, AM: This is an appeal filed by the assessee against the order of Ld CIT(A) dated 3.12.2012. The assessee has taken five grounds of appeals, out of which ground No.1,4 & 5 are general in nature which require no adjudication. 2. At the time of hearing, the Ld AR withdrew ground No.3. Therefore, the only ground of appeal left for adjudication is regarding action of Ld CIT(A) by ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... was reflected as part of other liabilities. The Ld AR took us to paper book page 7 to 28 wherein gist of case laws pronounced by various judicial authorities were placed wherein it was held that when the assessee did not debit service tax amount to the P&L Account as an expenditure there was no question of disallowing deduction u/s 43B. The case laws relied upon by Ld AR are reproduced below:- ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on record. We find that assessee has been following mercantile system of accounting and service tax collected by it is directly credited to the Service Tax Account from where the payments are deposited with treasury from time to time. No part of receipt of service tax has been taken to the P&L A/c neither any expense on account of deposit of service tax had been debited in the P&L A/c. The Assess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er as well as the Commissioner (Appeals) nevertheless disallowed the amount and added it back to the income of the assessee. The Tribunal set aside the order. On appeal to the High Court: Held dismissing the appeal, that since the assessee did not debit the amount to the P&L A/c as an expenditure nor claim any deduction in respect of the amount and considering that the assessee was following th....