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Tax Publishers
Payment of Service tax liability of earlier years
- Allowability
Facts:
Assessee paid show caused service tax and interest for
the FY 2012-13 to FY 2015-16 amounting to Rs. 3.69 crores in the assessment
year 2016-17. AO and CIT(A) disallowed the same citing that it is allowable
only in the year of actual expenditure and not in the year of payment.
Assessee's plea was that once it was paid in the current financial year due to
crystallization of the liability it was allowable under section 43B. On
appeal -
Held in favour of the assessee that once the payment of the
service tax was made in the current financial year the same is allowable under
section 43B.
Case: Intox (P)
Ltd. v. Asstt. CIT 2023 TaxPub(DT) 6161 (Pune-Trib)
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