Deduction for disputed service tax demand eligible in year of payment

Corrtech International Pvt. Ltd. Vs DCIT (ITAT Ahmedabad) The Assessing Officer disallowed the claim of Service Tax on the ground that the said demand was related to earlier years and the said Service Tax liability of the assessee or the recipient was on that point of time disputed by the parties. The Assessing Officer has not taken cognisance of the fact that the Service Tax of Rs.56,08,748/- was paid by the assessee during the year under consideration. The deduction in respect of the Service Tax is statutory liability irrespective of the period to which such liability pertains to. Thus, the ...