2015 (12) TMI 1818

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....t he addition of Rs. 11,47,255/- made by the AO on account of unpaid Service Tax." 2. Facts in brief as emerged from the corresponding assessment order passed u/s 143(3) of the IT Act dated 26th December, 2011 were that the assessee in individual capacity is proprietor of M/s. Amkay Construction. The assessee is engaged in civil construction contract work. Prima-facie, observation of the AO was that the profit for the year under consideration had gone down in comparison to the past years. The explanation of the assessee was that there was no trading business in the past but, in the year under consideration, the assessee was engaged in some trading business due to which the profit rate has gone down. From the accounts of the assesse....

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....enue and corresponding provision/charge is made in Profit & Loss Statement) Exclusive Method (wherein the indirect taxes are shown in the liability side and tax paid are debited to the liabilities account instead of debiting the Profit & Loss statement). In the instant case, the appellant has been, admittedly, consistently following the Exclusive Method of Accounting. I find that the AO has also not controverted the said and that is the reason why the AO did not reject the books of account u/s 145. The AO has stated in the assessment order that the appellant has understated the gross receipts by showing the receipts net of service tax and corresponding deduction also cannot be allowed as the payment was not made before the due date of filin....

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....s no question of disallowance of any tax or dues u/s 43B of the IT Act. Against the relief, as granted by the learned CIT (A), now, the Revenue is in appeal before us. 5. On the date of hearing, no one was present from the side of the respondent assessee. From the side of the Revenue, learned DR Smt. Shital S. Verma appeared and supported the order of the AO. 6. After considering the submissions of the learned DR, we are of the considered opinion that no interference is required in the decision given by the learned CIT (A). The issue of disallowance of unpaid statutory liability as prescribed u/s 43B of the IT ACT now stood resolved by several decisions. The impact of Circular No.372 dated 8th December, 1981 has also been considered. ....