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TMI Blog2016 (3) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... concurred with the decision taken by the CIT(A). It is settled proposition of law that no income shall be taxed twice. In the present case on hand, the A.O. has accepted that the income has been taxed by the department for the assessment year 2008-09. As rightly contended by the assessee it can be taxed either for the A.Y. 2008-09 or 2009-10 and it cannot be taxed for both the years. Therefore, we are of the opinion that, the CIT(A) has rightly set aside the issue to the file of the A.O. with the above direction. We do not find any error or infirmity in the order passed by the CIT(A) - Decided against revenue Disallowance of sales tax and service tax on payment basis - addition u/s 43B - Held that:- We are of the opinion that CST and Service tax paid under protest is deductible in the year in which such liability was paid u/s 43B of the Act, irrespective of whether such liability was incurred in any previous year. Therefore, we direct the A.O. to delete the additions made u/s 43B of the Act.- Decided against revenue - I.T.A.No.449/Vizag/2013, I.T.A.No.471/Vizag/2013 - - - Dated:- 11-2-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -09 relevant to assessment year 2009-10. The assessee being a company following the principles of prudence had not recognized the income for the financial year 2007-08, as the recoverability of which was in doubt. As soon the Tribunal passed final order, the CSEB has paid the amount, therefore, the assessee has recognized the income in the year in which the amount was received. The assessee further submitted that though it has offered the said income in the financial year 2008-09 relevant to assessment year 2009-10, the same was already been taxed by the assessing officer for the assessment year 2008-09, resulting a double addition for the same income in two financial years. Therefore, requested to exclude the income admitted for the current year and to this effect, filed a revised statement of total income excluding the amount received from the Electricity Board. The assessee further submitted that it has preferred an appeal before the CIT(A) for the assessment year 2008-09 and the appeal is pending for adjudication at the first appellate authority, therefore any addition in the current year purely depends upon the outcome of appeal of assessment year 2008- 09. The A.O. after cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee as per the statement of total income filed along with return of income. The CIT(A) after considering the facts and circumstances of the case, held that it is settled principles of law that there cannot be double taxation of any income and set aside the issue to the file of the A.O. with a direction to consider the assessee s submissions. In case the appeal of the assessee for the assessment year 2008-09 is dismissed, then the relief should be allowed for assessment year 2009-10. In case, the appeal of the assessee for the assessment year 2008-09 is allowed in favour of the assessee, then no relief should be given for the assessment year 2009-10. The sum and substance of the CIT(A) s order is that the income is taxable either for the assessment year 2008-09 or for the assessment year 2009-10 and it cannot be taxed for both the assessment years. We concurred with the decision taken by the CIT(A). It is settled proposition of law that no income shall be taxed twice. In the present case on hand, the A.O. has accepted that the income has been taxed by the department for the assessment year 2008-09. As rightly contended by the assessee it can be taxed either for the A.Y. 2008-09 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of [(a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or] (b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, [or] (c) any sum referred to in clause (ii) of sub-section (1) of section 36] [or] [(d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution [or a State financial corporation or a State industrial investment corporation], in accordance with the terms and conditions of the agreement governing such loan or borrowing. [,or] [(e) any sum payable by the assessee as interest on any [loan or advances] from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan [or advances],] [or] (f) any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee,] shall be allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom customers for placement of advertisements in media-However, it had not paid service tax on renegotiated prices-A survey was carried out by service tax authorities who issued show cause notice to the assessee for not paying service tax on such services-Assessee in order to buy peace and to avoid further litigation, deposited its service tax liability along with interest for earlier assessment years and claimed deduction of same as revenue expenditure under s 37(1)-AO and CIT(A) held that amount of service tax and interest paid was a liability which was not crystallized during the year in absence of any formal written agreement, same cannot be allowed as deduction In the current year either under s 37 or under s 43B-He1d, deduction claimed by assessee in respect of any sum paid by way of tax, duty, cess, or fee, shall be allowed only in computing the income referred to in s 28 of that previous year in which such sum is actual paid by him-Year in which assessee incurred liability to pay such tax, duty etc., has no relevance and cannot be linked in the matter of giving benefit of deduction under s 43B-Thus amount of service tax along with interest paid by the assessee is allowable ..... 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