2020 (2) TMI 1536

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.... VICE-PRESIDENT Revenue is in appeal before the Tribunal against the order of the ld.CIT(A)-3, Ahmedabad dated 22.8.2017 passed for the Asstt.Year 2013-14. 2. Though the Revenue has taken four grounds of appeal, but its grievance revolves around a single issue viz. the ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 2,34,04,061/-. 3. Brief facts of the case are that the ....

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....has been made. 4. Dissatisfied with addition, the assessee carried the matter in appeal before the ld.CIT(A). The assessee has submitted that this amount was not paid by the assessee. It represents service tax, but it has not been claimed as deduction in the profit & loss account. In other words, the assessee has not debited this amount in the P&L account, and therefore cannot be disallowed. The ....

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.... (1) P.Ltd. 305 ITR . The para-6& & of the judgment reproduced as under: 6. In our opinion since the assessee did not debit the amount to the Profit & loss account as an expenditure nor did the assessee claim any deduction respect of the amount and considering that the assessee is following mercantile system of accounting the question of disallowing the deduction not claimed would not arise. 7....

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....py of the Tribunal's order. 6. We have duly considered rival contentions, and gone through the record carefully. Section 43B provides that if any sum is payable by an assessee by way of tax, duty, cess or fees by whatever name called under any law for the time being in force, then such amounts shall be allowed to the assessee irrespective of the previous year in which the liability to pay such su....