9911796707
TMI Blog2021 (8) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... ave erred in not appreciating that entries relating to service tax payable have not been routed through Profit & loss account and as the assessee is maintaining accounts under cash system of accounting , no disallowance / addition can be made to the returned income. 3. That, since the service tax payable is not routed through profit and loss account ,The provision of section 43B are not applicable and no addition/disallowance can be made for such non payment before the end of financial year. 4. That the Id. AO and the CIT( Appeal) have erred in disallowing and adding a sum of Rs. 21,516.00 and Rs. 14,375.00 as TDS payable on others & salary respectively to the returned income. 5. That the Id. AO and the CIT (Appeal) have erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al are without prejudice to one another. 3. The assessee is a partnership firm and derives income from profession of Chartered Accountancy. Return of income was filed by the assessee for the Assessment Year 2013-14 on 30/09/2013 declaring a total income of Rs. 53,70,280/-. During the course of assessment proceedings the assessee produced original books of accounts, bills, vouchers, salary record, log book disposal. The Assessing Officer disallowed the expenses which according to the Assessing Officer have not been paid in the relevant Financial Year. The Assessing Officer further disallowed interest on service books as well as earlier year service tax. The Assessing Officer also disallowed the wealth expenses, staff welfare expenses, car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the assessee is following cash system of accounting whereby only payments which have been made during the year can be claimed as expenses and as these expenses are not paid, the same cannot be allowed as expenses. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the Assessing Officer is not disputing the accounting method of the assessee which is cash system. In fact, the Assessing Officer as well as the CIT(A) is admitting that TDS has been deducted by the concerned party while crediting the account of the assessee and deposited into government account as per 26AS of the assessee. The assessee has made TDS payment before the due date of filing of the return u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
