2022 (5) TMI 1127

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....ct (hereinafter referred to as the 'Act') dated 26.04.2019. 2. A perusal of the grounds of appeal shows that they are very detailed and not in consonance with the Income Tax Rules. However, the sole grievance only relates to disallowance of sales tax (CGST and SGST) at Rs. 1936970/- u/s. 43B of the Act. 3. Brief facts of the case are that the assessee is an individual engaged in construction business. The income of Rs. 17,96,480/- declared in the Income Tax return filed on 14.10.2018. Tax audit report u/s. 44AB of the Act along with Form 3CD was filed and under column 26 of this report auditor has mentioned that CGST and SGST of Rs. 19,36,970/- has not been paid before the due date of filing Income Tax return u/s. 139(1) of th....

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....both the lower authorities. 7. We have heard the rival contentions and pursued the records placed before us and carefully gone through the decisions relied by the ld. counsel for the assessee. The sole grievance raised in the instant appeal relates to the disallowance of CGST/SGST of Rs. 19,36,970/- u/s. 43B of the Act. The controversy in the instant appeal arise on account of the observation of the auditor made in Form 3CD in Point No. 26 wherein it has mentioned that the CGST/SGST of Rs. 19,36,470/- has not been paid before the due date of filing return of income and this observation was made in relation to the provisions of section 43B of the Act. 8. We note that provision of section 43B pertains to "certain deductions to be made o....

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.... GST through its profit and loss a/c nor it has claimed as an expenditure on any purchases made during the year in its profit and loss a/c nor any expenditure has been claimed towards any excess GST paid during the year. The audited balance sheet shows that the alleged sum was a current liability which the assessee has to pay with the Government treasury in the due course as per the rules and regulations governing GST. 10. This observation of the Ld. CIT(A) that provisions of section 43B is made to ensure that payment to the Government should be paid in time and the appellant "should not use the money due to Government" is devoid of merit as the issue in hand relates to computation of income earned by the assessee and claim of certain ex....