2026 (8) TMI 956

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....) r.ws. 144B of the Act, dated 24.09.2022. 2. Briefly stated facts of the case are assessee being a company filed its return of income on 21.01.2021 declaring a loss of Rs. 1,83,49,484/- for the Assessment Year 2020-21. The return was summarily processed under section 143(1) of the Act. Later, the case was selected for "limited scrutiny" under CASS for the following 2 issues: (i) Compliance with TDS provisions on payments outside India. (ii) High creditors / liabilities 3. Thereafter, notice under section 143(2) of the Act dated 29.06.2021 was issued and served on the assessee. Subsequently, notice under section 142(1) of the Act on various dates were issued and served on the assessee. Since the assessee did not resp....

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....s were made before the learned CIT(A). On examining the submission made by the assessee, the learned CIT(A) partially allowed an amount of Rs. 99,65,952/- while sustaining the additions of 96,71,466/- and Rs. 45,65,465/-. 5. On being aggrieved by the Order of the learned CIT(A), assessee is in appeal before us by raising various grounds. The issue emanating from the above grounds raised by the assessee are as follows: (i) Disallowance under section 43B of the Act being the GST payable amounting to Rs. 45,65,465/-. (ii) The disallowance under section 40(a)(ia) of the Act amounting to Rs. 96,71,466/-. 6. On the issue of disallowance of GST payable, the learned AR submitted that GST payable being a liability, is not rou....

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.... ITA Nos.300 & 301/Bang/2019 Ken Consulting Pvt. Ltd., Bangalore mercantile system of accounting, the question of disallowing the deduction not claimed would not arise". 10. Similarly, in the case relied on by the learned AR, the Co-ordinate Bench has followed the judgment of the Hon'ble High Court of Delhi as cited above and held that outstanding service tax liability is not liable to be added under section 43B of the Act, since the same has not been claimed as a deduction. Respectfully following the decision cited above, we are of the view that GST payable, being a liability, does not attract the provisions of section 43B of the Act and hence we direct the learned AO to delete the addition of Rs. 45,65,465/-. 11. On the second issue....