No disallowance u/s. 43B for unpaid GST as deduction not routed through P&L: ITAT Ahmedabad

Munjal Auto Industries Ltd Vs DCIT (ITAT Ahmedabad)

ITAT Ahmedabad held that since deduction not claimed and has not routed the same through P&L account, no disallowance under section 43B of the Income Tax Act for unpaid GST warranted.

Facts- In this case the disallowance of Rs. 13,27,094/- was made by the CPC under Section 43B of the Income Tax Act on account of mismatch in the amount reported as disallowance under Section 43B as per the Tax Audit Report. The adjustment was made by CPC on account of non­payment of GST, within the due date.

Conclusion- Allahabad High Court in the case of CIT vs. U P Hotels Pvt. Ltd. has held that in case assessee has not claimed any deduction in respect of its liability for payment of luxury tax, no question of addition under section 43B will arise.

Held that since the assessee has not claimed deduction of this amount and has not routed the same through P&L Account, we are of the considered view that no disallowance is called for under Section 43B of the Act for the unpaid GST since no deduction was claimed by the assessee with respect to the aforesaid amount.

FULL TEXT OF THE ORDER OF ITAT AHMEDABAD