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TMI Blog2024 (11) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has claimed deduction / expenditure u/s 43B of the IT Act adding to its taxable income. Accordingly, the impugned order passed by the ITAT holding that the appellant is liable to pay tax is liable to be and is hereby set aside. The substantial question of law is answered in favour of the assessee and against the Revenue. - HON'BLE SHRI SANJAY K. AGRAWAL AND HON'BLE SHRI RADHAKISHAN AGRAWAL, JJ. For the Appellant : Mr. S. Rajeswara Rao, Advocate. For the Respondent : Mr. Amit Chaudhari and Mr. Vijay Chawla, Advocates. JUDGMENT ON BOARD SANJAY K. AGRAWAL, J. 1. This tax appeal under Section 260A of the Income-tax Act, 1961 (for short, the IT Act ) has been preferred calling in question legality, validity and correctness of judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome under Section 139 (1) of the IT Act. 5. Feeling aggrieved against the order of the Assessing Officer, the appellant assessee preferred appeal before the first appellate authority i.e. the Commissioner of Income Tax (Appeals) under Section 246A (1) (a) of the IT Act and the CIT(A), by its order dated 15-3-2024, partly allowed the appeal of the appellant assessee to the extent of Rs. 1,79,97,376/- pertaining to opening balance for the assessment year 2018-19 deleting the same, but the balance disallowance of Rs. 62,32,262/- shown as payable in the balance sheet was confirmed against which the appellant assessee preferred further appeal before the ITAT which was also, in turn, dismissed finding no substance against which this appeal has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the record with utmost circumspection. 9. In order to consider the plea raised at the Bar, it would be appropriate to notice Section 43B(a) of the IT Act, which states as under: - 43B. Certain deductions to be only on actual payment. Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of (a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or xxx xxx xxx 10. In this regard, decision of this Court in M/s Ganapati Motors s case (supra) would be more relevant in which the issue before the Court was, whether Section 43B of the IT Act is attracted even when the assessee does not cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing the mercantile system of accounting, the question of disallowing the deduction not claimed would not arise. 12. Reverting to the facts of the case, it is admitted position on record that the appellant / assessee did not claim the amount of Rs. 62,32,262/- in his profit and loss account as an expenditure / deduction, nor the appellant claim deduction in respect of that account under Section 43B of the IT Act. In that view of the matter, the Assessing Officer, the CIT(A) and the ITAT, all three authorities have concurrently erred in holding that the appellant has claimed deduction / expenditure under Section 43B of the IT Act adding to its taxable income. Accordingly, the impugned order passed by the ITAT holding that the appellant is li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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