This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Section 43B does not contemplate liability to pay service tax before actual receipt of the funds
Case Law Details
- Case Name
- PCIT Vs. Tops Security Limited (Bombay High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2006-07
- Courts
- All High Courts, Bombay High Court
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
Principal CIT Vs. Tops Security Limited (Bombay High Court)
The Assessing Officer was of the view that by virtue of Section 43B of the Income Tax Act, 1961, service tax can be allowed only when paid and therefore the amount is not liable as deduction.
On appeal Hon;ble High Court held that Section 43B does not contemplate liability to pay service tax before actual receipt of the funds in the account of the assessee. Hence the liability to pay service tax into the Treasury will arise only upon the assessee receiving the funds and not otherwise. Thus the consideration has to be actually received...
