2025 (7) TMI 823

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce of Rs. 11,14,348/- made by the CPC Under Section 43B of the Act. The assessee has raised following grounds of appeal: "1. The Ld. Addl./JCIT(A) has erred on facts and law in confirming the action of ADIT CPC, Bangalore, vide order u/s 250 of the Act dt. 22.10.2024, of computing the income of the assessee at Rs. 35,00,720/- while processing the return vide order u/s 143(1) of the Act Dt. 28.10.2021 as against income of Rs. 23,51,210/-declared by the assessee in the return of income e-filed on 22.01.2021. 2. That the Ld. Addl./JCIT(A) has erred on facts and law in confirming the action of ADIT CPC, Bangalore, vide order u/s 250 of the Act dt. 22.10.2024, of disallowing Rs. 11,14,348/- u/s 43B of the Act on the basis of report of the t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of balance sheet reflecting the credit as well as debit balance of GST. It is the case made out by the assessee that the GST has not routed through the profit and loss account as reported by the auditor itself. When any expenses/liability has not been reduced from the profits particularly when it has not routed through profit and loss account no addition is called for. He has relied upon tax audit report at the time of hearing of the matter. 4. In spite of basic documents being the balance sheet, profit and loss account having been placed before the Ld. CIT(A), the Ld. CIT(A) failed to consider the fact and observed that the assessee himself has admitted that the same was reported as unpaid in tax audit report and no adjustment made in the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....under Section 43B of the Act in the tax audit report. Furthermore, when the same has not been routed through the profit and loss account the addition cannot be made as already decided by the jurisdictional High Court in the case of CIT vs. Noble and Hewitt (I) P. Ltd. reported in (2008) 166 taxman 48 (Delhi HC) as relied upon by the Ld. AR wherein the assessee did not deposit part of service tax collections with concerned authorities neither claimed any deduction in this regard nor did it debit the said amount as an expenditure in the profit and loss account, the addition made by the Ld. AO disallowing the said amount was rightly deleted by the Coordinate Bench as observed by the Hon'ble Jurisdictional High Court. The Ld. AR has also relied....