M/S ALCLAD FABRICATION PVT. LTD.,KOLKATA vs. DCIT, HQR-1, KOLKATA, KOLKATA

PDF · subscribers
ITA 1438/KOL/2015Status: DisposedITAT Kolkata29 March 2019AY 2011-20122 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that disallowance under Section 43B is not permissible if the deduction for service tax was not claimed by the assessee. Therefore, the disallowance made by the lower authorities was deleted.

What were the facts?

The assessee's appeal concerned the Assessment Year 2011-12. Grounds 1, 2, 4, and 5 were not pressed by the assessee and were dismissed. The remaining issue was regarding service tax payable under Section 43B.

What were the issues?

Whether disallowance under Section 43B of the Income Tax Act is valid when the assessee has not claimed deduction for the service tax liability.

Which sections of the Income-tax Act were involved?

Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA

Before: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi

Appearances by: Shri Soumitra Choudhury, Advocate, appeared on behalf of the assessee. Shri Robin Choudhury, Addl. CIT Sr. D/R, appearing on behalf of the Revenue. Date of concluding the hearing : February 12th, 2019 Date of pronouncing the order : March 29th, 2019 ORDER Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) - 4, Kolkata, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 17/09/2015, for the Assessment Year 2011-12. 2. In all, there are five grounds of appeal raised by the assessee. The ld. Counsel for the assessee stated that he would not be pressing Ground No. 1, 2, 4 &

5. Hence the same are dismissed as not pressed.

3. This leaves us with Ground No. 3, which is on the issue of service tax payable u/s 43B of the Act.

4. After hearing rival contentions, we find that the assessee has not claimed deduction of service tax of Rs.14,60,699/- during the year. There cannot be a disallowance u/s 43B of the Act, unless a deduction has been allowed u/s 32 to 37 of the

5.

In the result appeal of the assessee is allowed in part.

More judgments on Section 43B

All 7,161 judgments and leading authorities on Section 43B →

Recent GST High Court judgments

Search GST case law →