2012 (4) TMI 812 - AT - Indian Laws

Summary

Issues involved: Addition u/s.43B for non-payment of service tax.

Summary:
The appeal raised various grounds, with the main issue being the addition u/s.43B for non-payment of service tax. The assessee's counsel argued that the issue was similar to previous decisions by the Chennai Bench of the Tribunal and the Delhi High Court. On the other hand, the Departmental Representative (DR) relied on the CIT(A)'s order. After careful consideration, the Tribunal referred to the case law of ACIT vs. Real Image Media Tech. (P) Ltd. and CIT vs. Noble and Hewitt (I) P. Ltd. The Tribunal noted that the service provider is not entitled to claim a deduction on account of service tax, and therefore, the addition u/s.43B was not justified. Following the precedents, the Tribunal decided the issue in favor of the assessee, resulting in the allowance of the appeal.

The order was pronounced on 4/4/2012 by Shri T.R. Sood, Accountant Member, and Shri Vijay Pal Rao, Judicial Member.