TaxTMI 
TaxTMI 
2019 (2) TMI 634
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....sessee failed to deposit service tax amounting to Rs. 1,49,48,842/- to the Central Govt. Account well before filing of return. 2. Ld.CIT(A) has erred in law in deleting the above addition by ignoring the provisions of section 43B of the Act. In this case, the provisions of section 43B of the Act have overriding effect over Rule 6 of the service tax rules, 1994 clearly. 3. The appellant craves leave to add, alter or amend any of the grounds of appeal before or during the course of hearing of appeal." 2. Brief facts of the case are as under: Assessee filed its return of income on 29/09/11 declaring total income of Rs. 12,14,28,450/-. The case was subsequently selected for scrutiny and notice under section 143(2), 142(1) of the I.T.Act, 1....
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.... allowed claim of assessee by observing as under: "4.1.2. I have carefully considered the submissions of the appellant and perused the order passed by the Ld. AO. The assessee is partnership firm and is engaged in the business of logistics, installation and commissioning of electrical equipments and has derives income from the business, short term capitals and other sources and has maintained its accounts on mercantile basis and shown a sum of Rs. 1,49,48,482/- as service tax payable it its annual account for the relevant assessment year. The appellant has submitted all the relevant details called for by the AO. The appellant has filed details of service tax due but not payable as on the date of balance sheet and reconciliation of amount ....
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.... has itself claimed TDS in the return against entire composite receipts which included service tax portion of receipts and therefore, the appellant is under legal obligation to declare the entire receipts credited in its accounts and then seek deduction of only actual liability of service tax, which is either paid during the previous year itself or paid before the due date of filing of return for the A.Y. 2011-12. Though the appellant has a running account with its debtors each and every receipts is clearly and distinctively identifiable. against each bill and that in some cases the amount outstanding has been received by the appellant in due course of time in the next year on 6.4.11 (i.e. financial year 2011-12) which is date before the du....
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....e perused submissions advanced by both sides in light of records placed before us. 7.1. Assessee before us maintains its account on Mercantile basis and had shown a sum of Rs. 1,49,48,482/-, as service tax payable in its annual account for year under consideration. Finance Act,2011 provides that, from 01/04/11 service tax will have to be paid on accrual basis, meaning thereby, till 31/03/11 service tax was payable on collection or receipt basis, i.e. when dues are realised, service tax was payable. The case of assessee is that during relevant financial year, service tax was payable upon realisation of dues and assessee had made a provision in balance sheet for outstanding service tax payable, which was not claimed in profit and loss accou....