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)