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TMI Blog2014 (4) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax has been taken to the P&L A/c neither any expense on account of deposit of service tax had been debited in the P&L A/c - The AO and CIT(A) had relied upon the provisions of section 43B for making addition – Relying upon COMMISSIONER OF INCOME TAX Versus NOBLE AND HEWITT (I) P. LTD [2007 (9) TMI 238 - DELHI HIGH COURT] - since the assessee did not debit the amount to the P&L A/c as an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of appeal left for adjudication is regarding action of Ld CIT(A) by which he confirmed the addition of Rs. 13,98,408/- on account of service tax payable. 3. The Ld AR argued that the assessee had not debited the amount of service tax in its P L Account and therefore the Ld CIT(A) s action in confirming the addition was not justified. The Ld AR invited our attention to the audited accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction u/s 43B. The case laws relied upon by Ld AR are reproduced below:- 1. Shri Rajeev Kant Chadha v. Deptt. Of Income Tax in I.T.A. No.516/lucknow/2011. 2. Biotech Consortium India Ltd. v. Deptt. Of Income Tax in I.T.A. No.2841/Del/2012. 3. ACIT v. Real Image Media Technologies Pvt. Ltd. 306 ITR 106 (Chennai). 4. CIT v. Noble Hewitt (I) Pvt. Ltd. 305 ITR 324. 4. Relying heavily ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount of deposit of service tax had been debited in the P L A/c. The Assessing Officer and Ld CIT(A) had relied upon the provisions of section 43B for making addition. The Hon'ble Delhi High Court in the case of Noble Hewitt (I) Pvt. Ltd. (supra) under similar facts and circumstances has dismissed the appeal of revenue. The findings of the Hon'ble Delhi Court are summarized as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the amount and considering that the assessee was following the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise. 7. We find that facts of the present appeal are same. Therefore, we are in agreement that Ld AR and therefore ground No.2 is allowed. Other grounds of appeals being not pressed are dismissed. 8. In the result, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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