2015 (2) TMI 587

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ered both Section 43B of the Act and also the issue of mercantile system of accounting followed by the assessee before it. The revenue is not able to point out why the decision of Delhi High Court requires reconsideration. In our view, the Delhi High Court's decision in Noble & Hewitt Pvt. Ltd. (supra) has correctly held that Section 43B of the Act is a provision for allowing deduction of tax on p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... question of law for our consideration: Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of unpaid service tax u/s 43B of the Act without appreciating that the said liability was clearly disallowable within the provisions of the said Section? 3. The Counsel are agreed that the issues arising in both the appeals are .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Current Liabilities in the Balance Sheet. This was as per the guidelines issued by the Institute of Chartered Accountant of India. Further it was also pointed out that in the absence of respondent claiming any deduction on account of the unpaid service tax to arrive at its income the question of application of Section 43B would not arise. The Assessing Officer did not accept the contention and add .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to the Profit and Loss Account, the occasion to apply Section 43B of the Act would not arise. It is only when an amount of tax payable is claimed as a deduction, the same would be allowed, only if actually paid. Further the impugned order restored the issue to the Assessing Officer so as to examine on facts whether or not the respondent-assessee has debited the service tax payable to its Profit a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... view, the Delhi High Court's decision in Noble Hewitt Pvt. Ltd. (supra) has correctly held that Section 43B of the Act is a provision for allowing deduction of tax on payment but this can only be triggered if deduction with regard to taxes payable is claimed for arriving at taxable income. 9. According to us, the issue raised in this appeal is conclusively covered by the order of Delhi Hi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X