ITAT Kolkata Allows Deduction of Outstanding Service Tax in Income Tax Return

Space Out of Home Vs ITO (ITAT Kolkata) The appeal by Space Out of Home to the Income Tax Appellate Tribunal (ITAT), Kolkata, challenged the disallowance of Rs.19,37,607/- related to outstanding Service Tax liability for the Assessment Year 2018-19. The disallowance was initially made by the CPC, Bengaluru, while processing the return under Section 143(1) and was subsequently upheld in a rectification order under Section 154 and confirmed by the Ld. CIT(A). The core issue was the treatment of the outstanding service tax, which the CPC disallowed under the premise that it violated Section 43B o...