2013 (7) TMI 1205

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....ri Satpal Singh, Sr. DR. ORDER PER SHAMIM YAHYA, AM: This appeal by the assessee is directed against orders of CIT(A) dated 28.1.2011 and pertains to assessment year 2008-09. 2. The issue raised is that CIT(A) erred in sustaining addition of Rs. 4,84,771/- on account of service tax. 3. In this case, the assessing officer asked details of payment of service tax liability before due d....

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....ns. 6. (I) ACIT V. Real Image Media Technologies (P) Ltd. 114 nITD 573 (Mad.) (II) CIT V. Noble & Hewitt India Pvt. Ltd. 166 Taxman 48 (DELHI). 7. Ld. Departmental representative on the other hand could not rebut the submissions of the Ld. Counsel of the assessee. 8. We have carefully considered the submissions. We find that in the case of ACIT V. Real Image Media Technologies Pvt. Ltd. (....

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....wards the value of taxable service. If there is no liability to make the payment to the Government, because of non-receipt of payments from the receiver of services, then it cannot be said that such service tax had become payable in terms of S. 43B(a). (2) 145 A includes sales tax, excise duty, etc. in the turnover of purchases and sales of goods, but it does not apply to services and hen....

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....g that the assessee is following the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise. Ld. Counsel for the revenue submits that the assessee has sought to evade tax under the mercantile system of accounting. We are of the view that it is not for the revenue authorities to tell the assessee how to maintain its accounts. We cann....