AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (3) TMI 766
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.... for the assessment year 2018-19. The assessee has assailed the impugned order on the following grounds of appeal: "1. The learned NFAC erred in passing the order dated 14 July 2022 based on the surmise and conjecture. Accordingly, such order is bad in law and ought to be quashed. 2. The learned NFAC erred in not appreciating the facts of the appellant's case and hence the basis on which the proceedings are completed is not in accordance with the law. Ground No.3-Disallowance under section 43B-Rs. 25,06,246 3.1 The learned NFAC erred in upholding the disallowance of Rs.25,06,246 in terms of provisions of section 143(1) of the Act in the Intimation by invoking provisions of section 43B. 3.2. In the facts and circumstances of th....
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.... the disallowance made under section 43B with respect to VAT payable of Rs. 25,06,246 and to compute total income and tax thereon accordingly. Ground no.4 - Excess levy of interest under section 234A 4.1. The learned NFAC erred in not adjudicating on the ground of levying excessive interest under section 234A of the Act at Rs.8,490 as against correct amount of Rs.746 as computed by the appellant in the return of income. Ground no.5 - Excess levy of interest under section 234B 5.1. The learned NFAC erred in not adjudicating on the ground of levying excessive interest under section 234B of the Act at Rs.1,18,860 as against correct amount of Rs.5,222 as computed by the appellant in the return of income. Ground no.6 - Erroneous levy o....
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....ave considered, among other issues, the issue of disallowance u/s.43B of the Income Tax Act. 5.4.1. The appellant deals in Cigarettes, Pan masala, Tea etc. 5.4.2. It is common knowledge and known to all consumers that while purchasing Cigarettes. Pan masala, Tea all the consumers pay VAT/GST/Sales tax to the seller. 5.4.3. The appellant while purchasing Cigarettes, Pan masala, Tea from the producers/whole sale dealers /distributors would have paid VAT/GST/Sales tax to the sellers. Similarly the appellant while making sales would have charged and collected VAT/GST/Sales tax from the buyers. Therefore VAT/GST/Sales tax charged and collected by the appellant from the buyers forms part of total sales/turnover of the appellant. 5.4.4. No....
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....he appellant pays Rs.25,06,246/-, deduction u/s 43B would be allowed as deduction." 4. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal before me. 5. I have heard the ld. authorized representatives of both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by them to drive home their respective contentions. 6. Controversy involved in the present appeal has two facet, viz. (i) that as to whether or not the lower authorities were justified in law and the facts of the case in making/sustaining the addition towards VAT tax liability of Rs.25,06,246/- which was not pa....
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....r of the appeal is to be treated as relatable to Value Added Tax (VAT) payable by the assessee and, if so, whether it has to be actually paid by him before filing of the return under the Income Tax Act. This question is relevant, having regard to the manner in which the question of law has been framed. The issue as to whether Section 43-B of the Income Tax is attracted even when the assessee does not claim any deduction on the strength of that provision may also be relevant. 3. The Assessing Authority, on the instant issue, noticed that the assessee's claim regarding the treatment of VAT in the Books of Accounts has been verified from the Books and that has been found to be in order. The Assessing Authority also found that VAT has bee....
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....rt of Delhi in Commissioner of Income Tax v. Noble & Hewitt (India) (P) Ltd., 2008 305 ITR 0324, which make a nice distinction between Chowringhee's case and instances where Profit and Loss accounts and Service Tax accounts are maintained separately following mercantile system of accounting. As rightly noticed therein, it is not for the Income Tax department to make out a case relating to the correctness or otherwise of the mercantile system of accounting, resorted to and maintained by an assessee. The acceptability or otherwise of the accounts in a mercantile system would obviously be a matter of concern for other taxation authorities. 6. In the case in hand, as already noted, the fact situation that the Assessing Authority and the F....