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Issues:
1. Addition of unpaid statutory liabilities under section 43B of the IT Act. Analysis: The Revenue appealed against the deletion of an addition of Rs. 58,548 made by the ITO as unpaid statutory liabilities under section 43B of the IT Act. The assessee, engaged in manufacturing textile machinery parts, had sales-tax liabilities shown on the balance sheet. The CIT(A) deleted the addition, stating the sales-tax amount was never debited to the Profit & Loss Account. The Revenue argued that sales-tax collections are part of trading receipts and should only be deducted in the year of actual payment as per section 43B. The assessee contended that certain sales-tax amounts were paid before the due date and others were part of consistent accounting practices accepted by the Department over the years. The Tribunal examined the submissions and found that the sales-tax liability of Rs. 7,231 for the last quarter was paid before the due date, thus deleting this amount based on precedent. The assessee's method of carrying forward set off claims until finalization of sales-tax assessments and showing them as income upon receipt of assessment orders was consistent. The Tribunal noted instances of double taxation due to inconsistent treatment by the Revenue in previous years. It was concluded that the addition of Rs. 58,548 was unjustified based on the assessee's accounting practices and consistent treatment accepted by the Department. Therefore, the Tribunal dismissed the Revenue's appeal, upholding the deletion of the addition of Rs. 58,548 related to unpaid statutory liabilities under section 43B of the IT Act.
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