TaxTMI 
TaxTMI 
2016 (8) TMI 1456
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....income for AY 2011-12 on 28/09/2011 declaring a total income of Rs. 33,89,420/-. The case was selected for scrutiny under CASS and notice u/s 143(2) was issued on 01/08/2012 and served on the assessee on 11/08/2013. 3. During the course of scrutiny, the AO observed that the assessee has not paid statutory dues for services tax (Rs. 53,11,646/- ), Central Sales Tax (Rs. 5,42,895/-) and VAT (Rs. 68,753/-) till the due date for filing the return thereby attracting disallowance u/s 43B of the IT Act. Non payment of statutory due was pointed out at Sl. No. 9a of the annexure to the auditors report. In this connection, a show cause notice was issued on 21/01/14 and it was informed by the assessee that these dues were paid only during FY 2013-14.....
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....es Tax Rs. 5,42,895 and VAT of Rs. 68,753 was not passing through the Profit and Loss etc will not come to the rescue of the appellant. 3. The learned Commissioner of Income Tax (Appeals)-9, Hyderabad, erred in confirming the addition of Rs. 59,23,293. 4. The appellant craves leave to add/ alter/ modify grounds which would be necessary for adjudication of the case." 8. Ld. AR of the assessee submitted before us that no doubt there was liability appearing on the liabilities side of the balance sheet, but, these expenses were not claimed by the assessee in the P&L A/c. He submitted that as per the provisions of section 43B, those expenditure, which are claimed, but, which were not paid before filing of the return, can be disallowed. He a....
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.... of the amount and considering that the assessee is following the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise. 7. Ld. Counsel for the revenue submits that the assessee has sought to evade tax under the mercantile system of account. We are of the view that it is not for the revenue authorities to tell the assessee how to maintain its accounts. 10.2 In the case of CIT Vs. Everest Litho Press, [2006] 285 ITR 297 (Mad.), on which reliance placed by the assessee, the Hon'ble Madras High Court has held as under: "6. In the case on hand, the amount collected as sales tax was never claimed as deduction by the assessee. Section. 43B of the Act is not attracted at all when the assess....