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 Case The assessee company was engaged in the business of manufacturing, trading and renting of construction and material handling equipments. The ...