Service Tax Liability Arises Only on Actual Receipt of Funds – ITAT Upholds Deletion of Rs. 3.62 Cr Addition

DCIT Vs Seven Hills Project Private Limited (ITAT Kolkata) ITAT Kolkata holds that under Section 43B, service tax liability arises only when funds are actually received. The Tribunal upholds CIT(A)’s deletion of Rs. 3.62 Cr addition but remands the case for proper verification of P&L routing and receipt of payments. This case involves an appeal filed by the Income Tax Department (Revenue) against an order by the Commissioner of Income Tax (Appeals) [CIT(A)] regarding the assessment of Seven Hills Project Private Limited for the assessment year 2015-16. The central issue is the disallowan...