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TMI Blog2022 (2) TMI 1467X X X X Extracts X X X X X X X X Extracts X X X X ..... s of accrual of liability - HELD THAT:- Deduction by the assessee for the amount expanded towards service tax. This deduction could be granted only upon actual payment and not on accrual as is provided under Section 43B of the Income Tax Act, 1961. The department does not dispute either the genuineness of expenditure or that the amounts were actually deposited before the government revenue. The on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain through VC For Respondent: None ORDER D.B. Income Tax Appeal No. 64/2019:- This appeal is admitted for consideration on following substantial question of law:- Whether the Tribunal was justified in setting aside the enhancement of income made by CIT(A) in exercise of its powers u/s 251 of the Act, ignoring that the said enhancement of income was made considering the past history of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in directing the Assessing Officer to allow the deduction of Rs.41,48,656/- towards Service Tax in assessment year 2014-15, ignoring that the payment of tax is allowed only on actual payment as per Section 43B of the Act and not on the basis of accrual of liability? So far as question No.1 is concerned, the same involves a total amount of addition of Rs.3,39,791/-. Looking to the smallnes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in terms of Section 43B of the Act or at best in the earlier year 2012-13. The Tribunal therefore issued consequential directions. We do not find any error in the view of the Tribunal. As noted, undisputedly the assessee had undertaken the expenditure and that the amount was actually paid in the government revenue. In terms of Section 43B of the Act the expenditure would be available only upo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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