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TMI Blog2020 (7) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... ation by invoking section 148 of the Act. We note that there is no infirmity in the direction given by the ld. CIT(A) therefore, we decline to interfere in the order passed by ld. CIT(A), his order on this issue, is hereby upheld and grounds of appeal raised by the revenue is dismissed. - ITA No. 185/Kol/2019 - - - Dated:- 8-7-2020 - SHRI S.S. GODARA, JM AND DR. A.L. SAINI, AM For the Appellant : Shri Supriyo Paul, JCIT For the Respondent : None ORDER Per Dr. A.L. Saini, AM: The captioned appeal filed by the revenue, pertaining to assessment year 2013-14, is directed against the order passed by the Commissioner of Income Tax (Appeal)-4, Kolkata, in appeal no. 1403/CIT(A)-4/C-10(2)/15-16, which in turn arises ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s qua the issue are that on perusal of the audited accounts for the year ending on 31.03.2013 in the case of the assessee, it was noticed by Assessing Officer that as on 31.03.2013 service tax of ₹ 2,02,52,413/- was shown as payable. In course of scrutiny proceedings, the details were filed by the assessee with regard to discharge of outstanding liability of service tax. The perusal of the said details revealed that the assessee had paid only ₹ 13,00,000/-before the filing of return of income on 18.10.2013. Therefore, the balance liability of ₹ 1,89,52,413/- (2,02,52,413 -13,00,000) on account of service tax was required to be added back to the total income as per the provisions of Section 43B of the Act. In course of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of Sec. 43B, clearly state that the liability incurred on account of service tax during the relevant previous year but not paid before the filing of ITR within the due date will be added back to the total income of the assessee. Moreover, it does not make any difference to the net profit of the assessee whether the receipts of service tax and its payment to the government authorities are routed through the Profit Loss Account or not since the assessee follows the mercantile system of accounting. Hence the sum of ₹ 1,89,52,413/- on account of service tax payable was added back to the total income of the assessee. 8. Aggrieved by the order of the Assessing Officer the assessee carried the matter in appeal before the ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence for taxation then bring the same to taxation by invoking section 148. The assessee is directed to provide the relevant information to the A.O. 9. Aggrieved by the order of the ld. CIT(A) the revenue is in appeal before us. 10. We have heard ld. D.R. for the revenue and gone through the order of ld. CIT(A). We note that ld. CIT(A) has rightly held that since the assessee has not debited the service tax in its profits and loss account therefore no disallowance can be made u/s 43B of the Act. Since the ld. CIT(A) has already directed to the Assessing Officer stating that in subsequent years when the service tax liability has been settled at a lesser amount the assessee is duty bound to offer the difference for taxation, and the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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