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TMI Blog2021 (12) TMI 1293X X X X Extracts X X X X X X X X Extracts X X X X ..... imation u/s 154, the assessee filed this appeal. I find that the documents placed on record prove that the GST outstanding declared in the balance sheet was not routed through the profit loss account and therefore, the addition sustained by learned CIT(A) u/s 43B is not warranted. In the case of CIT vs. S. B. Foundry [ 1990 (4) TMI 43 - ALLAHABAD HIGH COURT] has dismissed the appeal of the Revenue wherein under similar circumstances the additions were made by the Assessing Officer and Appellant Assistant Commissioner had deleted the same which were confirmed by the Tribunal. As decided in INDIA CARBON LIMITED VERSUS INSPECTING ASSISTANT COMMISSIONER OF INCOME-TAX AND ANOTHER [ 1992 (9) TMI 83 - GAUHATI HIGH COURT] in the instant case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance sheet but which was not routed through profit loss account. It was submitted that CPC (AO) added this amount in income as disallowable u/s 43B of the Act. Learned counsel for the assessee submitted that the said outstanding amount of GST was not routed through the profit loss account and in this respect our attention was invited to the copy of profit loss account, placed at pages 4 to 6 of the paper book. Our attention was invited to the copy of extract of auditor s report, placed at page 3 of paper book where the auditor has specifically mentioned that no amount of Sales Tax/GST, Customs Duty, Excise Duty or any indirect tax has been passed through the profit loss account. Learned counsel for the assessee submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat GST payable was not routed through the profit loss account and therefore, disallowance u/s 43B was not warranted but these contentions were not accepted. The assessee also filed application u/s 154 mentioning the facts of the case. However, the application u/s 154 was also rejected and aggrieved by the intimation u/s 154, the assessee filed this appeal. I find that the documents placed on record prove that the GST outstanding declared in the balance sheet was not routed through the profit loss account and therefore, the addition sustained by learned CIT(A) u/s 43B is not warranted. The Hon'ble Allahabad High Court in the case of CIT vs. S. B. Foundry (supra) has dismissed the appeal of the Revenue wherein under similar circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the liabilities side and, in these circumstances, the question of any add back from the profit and loss account did not arise. The Tribunal, therefore, refused to interfere with the order of the AAC. No error in the approach taken by the Tribunal was pointed out to us. Accordingly, the application under s. 256(2) is rejected. 4.1 Similarly, Hon'ble Gauhati High Court in the case of India Carbon Ltd. vs. ACIT 200 ITR 759, vide order dated 22 September, 1992 held as under: Sec. 43B declares that taxes and duties shall not be allowed as deduction from the income unless they are actually paid. It removes the doubt as to the meaning of the word paid according to the method of accounting regularly employed by an assessee, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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