9911796707
|
Home
Issues involved: Appeal against CIT(A) orders sustaining addition of service tax amounting to Rs. 4,84,771 under section 43B of the IT Act for assessment year 2008-09.
Summary: The assessing officer disallowed the service tax liability of Rs. 4,84,771 as it was not paid before the due date for filing the return of income under section 139(1) of the Act. The CIT(A) upheld this addition. However, the assessee appealed, citing precedents such as ACIT v. Real Image Media Technologies and CIT v. Noble & Hewitt India Pvt. Ltd. The tribunal noted that the rigour of section 43B may not apply to service tax due to the nature of the liability and the absence of payments from the receiver of services. It was also highlighted that service tax cannot be included in turnover as per Rule 6 of the Service Tax Rules. In line with these decisions, the tribunal set aside the lower authorities' orders and ruled in favor of the assessee, allowing the appeal. Judgment: The tribunal found that section 43B does not apply to service tax liability based on the nature of the liability and the absence of payments from the receiver of services. Citing precedents, the tribunal ruled in favor of the assessee, allowing the appeal against the addition of service tax amounting to Rs. 4,84,771.
|
