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Issues Involved: Appeal against CIT (A) order for assessment year 2005-2006. Grounds: 1. Disallowance u/s 43B for unpaid service tax liability. 2. Addition of Rs. 19,60,000 u/s 41(1) IT Act, 1961.
Disallowed Service Tax Liability u/s 43B: Tribunal upheld CIT (A) decision based on previous case law. AO disallowed Rs. 54,71,000 u/s 43B for outstanding service tax liability. CIT (A) deleted disallowance citing case law precedent where service tax collection not debited to accounts cannot be disallowed. Tribunal followed consistency principle and ruled in favor of assessee. Addition u/s 41(1) IT Act: Assessee pointed out issue not relevant to current year but to assessment year 2006-2007. AO disallowed Rs. 19.60 lakhs u/s 41(1) for 2006-2007, not current year. Tribunal dismissed this ground as not arising from current order. Revenue's appeal was ultimately dismissed. Conclusion: Tribunal dismissed Revenue's appeal against CIT (A) order for assessment year 2005-2006, upholding disallowance u/s 43B for unpaid service tax liability and dismissing addition u/s 41(1) IT Act issue not relevant to the current year. The decision was based on legal precedents and consistency with previous rulings.
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