Unpaid VAT liability not claimed as expense in P&L cannot be disallowed u/s. 43B

DCIT Vs Grand Motors (ITAT Raipur) ITAT Raipur held that disallowance under section 43B of the Income Tax Act towards unpaid VAT liability cannot be sustained since the amount was not claimed as an expenditure in P&L account. Accordingly, appeal of revenue dismissed. Facts- The assessee is a firm engaged in the business of Automative products. The return of the assessee was processed by CPC and an intimation u/s 143(1) was issued, making therein certain disallowances, thus, enhancing the total taxable income of the assessee at Rs.3,13,35,153/-. The specific disallowances are made u/s 43B o...