No disallowance u/s 43B for unpaid sales tax liability shown as contingent liability

Brief of the Case

ITAT Delhi held In the case of DCIT vs. M/s. Escorts Construction Equipment Ltd. that we find that this amount represents unpaid sales tax liability and the same was disclosed itself by the assessee as a contingent liability. There is no impact in the Profit & Loss account since the assessee had not claimed any deduction on that account. Therefore, we find that AO could not have made any disallowance on this issue.

Facts of the

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