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TMI Blog2020 (2) TMI 1536X X X X Extracts X X X X X X X X Extracts X X X X ..... uch amount could be claimed in the year in which they were actually paid. In the present case, the assessee has not paid service tax liability. Thus, it cannot claim deduction. The assessee has not claimed the deduction in its account. Therefore, nothing was to be disallowed by the AO. By this exercise, the AO has made double additions; viz (i) assessee himself has not claimed the deduction, and (ii) the AO has added back this amount. CIT(A) has rightly relied upon the decision of CIT Vs. Noble Hewitt (I) P Ltd. [ 2007 (9) TMI 238 - DELHI HIGH COURT] and deleted the addition. - Decided in favour of assessee. - ITA.No. 2401/Ahd/2017 - - - Dated:- 27-2-2020 - SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his amount was not paid by the assessee. It represents service tax, but it has not been claimed as deduction in the profit loss account. In other words, the assessee has not debited this amount in the P L account, and therefore cannot be disallowed. The ld.first appellate authority examined this aspect, and thereafter deleted the addition. The finding recorded by the ld.CIT(A) reads as under: 3.2 Decision: I have perused the facts of the case as enumerated by the AO and as submitted by the appellant. The explanation of the appellant has been considered by the AO but rejected as the figures were in sundry creditor in balance sheet. The AR at very outset of proceedings submitted that the appellant has been going through acute financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record copy of the Tribunal s order. 6. We have duly considered rival contentions, and gone through the record carefully. Section 43B provides that if any sum is payable by an assessee by way of tax, duty, cess or fees by whatever name called under any law for the time being in force, then such amounts shall be allowed to the assessee irrespective of the previous year in which the liability to pay such sum incurred by the assessee, according to the accounting method regularly employed by him, only in computing the income in the year in which such sum is actually paid by him. In other words, if these statutory levies were required to be claimed by the assessee, then the deduction of such amount could be claimed in the year in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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