TaxTMI 
TaxTMI 
2016 (3) TMI 360
X X X X Extracts X X X X
X X X X Extracts X X X X
....ue date of filing of return to the extent of Rs. 49,65,614/- the addition made by the Assessing Officer u/s 43B is confirmed to this extent. The said action is illegal and unjustified. 2. That on the facts and circumstances of the case the learned CIT(Appeals) has erred in sustaining disallowance of Rs. 49,65,614/- under the provisions of section 43B. The disallowance sustained is unjustified and excessive. 3. That the learned CIT(Appeals) has erred in confirming the disallowance o' Rs. 2,06,757/- out of telephone expenses, conveyance, car expenses and depreciation on car. The disallowance confirmed is unjustified and excessive. 4. That the learned CIT(Appeals) has erred in sustaining disallowance of Rs. 1,09,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee's reply, the ld Assessing Officer has held that as per Hon'ble Supreme Court decision in the case of Chowrangee Sales Beuro Vs. CIT 87 ITR 542, sales tax collected by the assessee from its customers cannot be excluded while computing total sales of the assessee. Similar view held by the Hon'ble Apex Court in the case of Mc.Dowell & Co. 154 ITR 148 that excise duty collected by the assessee is part of sales consideration. He further relied on the decision of Hon'ble Supreme Court in the case of Kedarnath Jute Manufacturing Co. Ltd. Vs. CIT 82 ITR 363 and held that service tax charged by the assessee is an integral part of its turnover. It is immaterial whether the same has been debited in the Profit and loss account or not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....risdictional tribunal and also various other decisions relied upon by the appellant, it is held that appellant's liability to pay service tax arises only after receiving payment and therefore service tax on the unpaid services will not be liable for disallowance under section 43B. Since appellant himself admitted that it was liable to pay service tax before due date of filing return to the extent of Rs. 49,65,614, addition made by the AO under section 43B is confirmed to this extent. For the remaining disallowance, assessing officer will verify whether appellant received payment for services till the end of the financial year or not. If because of non receipt of payment for services, appellant is not liable to pay service tax, addi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....parately shown and the account of the party is debited by full amount inclusive of service tax, the remuneration account is credited with the amount of remuneration and service tax is separately shown in the service tax account. This procedure is also adopted in respect of freight charges also. Thus the assessee is not claiming any expenditure by debiting the service tax to the P&L account, which is being reflected in the books of account of the assessee. Therefore, no addition can be made U/s 43B of the Act. He has further drawn our attention to the decision of Hon'ble Bombay High Court in the case of CIT Vs. M/s Calibre Personnel Services Pvt. Ltd., Mumbai in Tax appeal No. 158 of 2013 order dated 02/02/2015 wherein identical view had bee....