S. 43B: Deduction on actual payment – Service tax – Not received from parties – No disallowance can be made
Where it was found that, before end of the year, the amount on which service tax was payable had not been received from parties to whom services were rendered, no disallowance can be made for such unpaid service tax amount. (ITA No 1023 of 2013 dated 17-4-2015) (AY. 2007-08)
CIT v. Ovira Logistics (P) Ltd. (2015) 119 DTR 269 (Bom.)(HC)
. 68 : Cash credits – Peak credit – Benefit of peak credit would be available unless otherwise established by the Revenue that it was invested elsewhere. [S. 69]
The assessee accounted for certain purchases in the cash book on later dates than the date of bills. An addition u/s. 69 was made by the AO on the same. On appeal, the HC held that items purchased were at short intervals, hence funds rotated and benefit of peak credit can be invoked and entire addition could not be made. If the AO comes to a finding that withdrawn amount was used or spent by assessee for any other investment or expenditure than the benefit of peak of such credit, in such circumstances, may not be available. (AY. 1994-95)
Sind Medical Stores v. CIT (2015) 117 DTR 78 (Raj.)(HC)
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