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TMI Blog2018 (9) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted the TDS on the payment of ₹ 6,60,159/- and the remaining amount of ₹ 58, 350/- was disallowed by the AO in the assessment proceedings. There is no error in the assessment order which is prejudicial to the interest of the revenue. Revision u/s 263 - addition of unpaid service tax - Held that:- The assessee has debited a sum of ₹ 9, 14, 594/- under service tax and a sum of ₹ 1, 15, 694/- remained unpaid at the end of the year which required to be disallowed under section 43B. There was no dispute that the said amount attracts disallowance u/s 43B of the Act and the issue was not verified by the AO. The contention of the Ld. AR that the disallowance of a sum of ₹ 1, 15, 694/- results into reducing the los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest payment but not deducted the tax at source. Similarly, the assessee also debited a sum of ₹ 9, 14, 594/- towards the service tax payable for the assessment year 2012-13. The Ld. CIT(A) observed that out of the service tax, only a sum of ₹ 3, 95, 274/- was paid before the due date of filing the returns of income and the balance amount of ₹ 5, 19, 320/- was remained unpaid and required to be disallowed and added back to the income u/s 43B of the Act. The Ld. Pr. CIT observed that the Assessing Officer (AO) has not examined the issue while passing the assessment order. Therefore, the Pr. CIT issued show cause notice and not being convinced with the explanation of the assessee set aside the assessment order passed u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60, 159/- and the remaining amount of ₹ 58, 350/- was disallowed by the AO in the assessment proceedings. Therefore, there is no error in the assessment order which is prejudicial to the interest of the revenue. Hence, the order of the Ld. CIT(A) passed u/s 263 on this issue is set aside and the assessee s appeal on this ground is allowed. 6. The next issue for taking up the case for revision u/s 263 is service tax payable. The assessee has debited a sum of ₹ 9, 14, 594/- under the head service tax and the details of the service tax debited to the Profit Loss account, outstanding as at the end of the financial year, paid before the due date of filing the return of income and the remaining balance to be paid is as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e therefore, there was an error in the assessment order passed by the AO u/s 143. However, the Ld. AR argued that though there was an error in the assessment order for nondisallowance of unpaid service tax but the same is not prejudicial to the interest of the revenue since the return of income of the assessee resulted into loss and even after making disallowance of the service tax, the taxable income would be Nil reducing the loss. Therefore, the Ld. AR was of the view that the disallowance which reduces the loss does not result into positive income and cannot make the assessment prejudicial to the interest of the revenue, hence, requested to set aside the order of the Ld. Pr. CIT and allow the appeal of the assessee. 7. On the other ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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