2017 (6) TMI 1192 - HC - Income Tax

Addition u/s 145A - inclusion of service tax as part of trading receipts - Tribunal deleted the addition - Held that - As decided in M/s. Knight Frank (India) Pvt. Ltd. case 2016 (8) TMI 1096 - BOMBAY HIGH COURT no ambiguity in Section 145A as arising for our consideration. However, even if one were to assume the main part of Section 145A is capable of more then one interpretation, the interpretation sought to be canvassed by the Revenue,is not sustainable. Therefore, Section 145A would have no application in cases where service is provided by the Assessee. Addition u/s 43B - unpaid service tax liability disallowed - Held that - It is an admitted position before us that the respondent assessee had not claimed any deduction on account of the service tax payable in order to determine its taxable income. In the above view, there can be no occasion to invoke Section 43B of the Act.

Summary

The High Court of Bombay dismissed the appeal related to Assessment Year 2007-08 as no substantial question of law arose, based on a previous judgment confirmed by the court in 2016.