2018 (5) TMI 1962

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..... no debit to the profit and loss account on account of liability of service tax account or there is no claim by the assessee for deduction of service tax payable. This issue was considered by the Hon'ble Bombay high court in the case of CIT Vs. Knight Frank (India) Pvt. Ltd. [2016 (8) TMI 1096 - BOMBAY HIGH COURT] - we allow the grounds of appeal raised by the assessee. - I.T. A. No.1778/ .....

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..... cting the appellant's contention that Service tax which is not part of the liability towards service and in absence of claim for deduction, disallowance was not warranted. 3. Order of the learned Commissioner of Income Tax (Appeals) is opposed to the CBDT Circular dated 13-01-2014 in reference No. 1/2014. 4. The learned Commissioner of Income tax (Appeals) erred in holding no appeal li .....

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..... to the Government Account invoking the provisions of Section 43B of the Act. In sum and substance, the case of Assessing Officer is that the service tax calculated forms part of the trading receipt of the assessee should be treated on par with the trading receipt, the fact that the amount collected but not paid to the Government Account, attracts disallowance under Section 43B of the Act. Being .....

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..... ions and perused the material on record. In the present case, where the service tax calculated but had not paid to the central government account can be disallowed under the provisions of Section 43B of the Act. Admittedly, the service tax account is not routed through the profit and loss account but through suspense account which means that there was no debit to the profit and loss account on a .....

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..... Logistics P. Ltd. 377 ITR 129 and CIT V. Calibre Personnel Services Pvt. Ltd. (Income Tax Appeal No.158 of 2013) rendered on 2nd February, 2015. (c) In view of the above, the question (ii) as proposed is covered by the decision of this Court. Therefore, it does not give rise to any substantial question of law. Thus, not entertained. Respectfully following the decision of the Hon'bl .....

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