Service Tax Shown Only in Balance Sheet -Section 43B Disallowance Only if Deduction Claimed

ITO Vs Budhia Auto (ITAT Raipur) AO completed original scrutiny assessment u/s 143(3) in Feb 2015, accepting unpaid VAT & Service Tax as balance sheet items. Later, AO reopened assessment u/s 147 (notice issued in Mar 2019, beyond 4 years) alleging non-payment of Service tax ₹7.63 lakh (paid in Mar 2013, after ITR due date)& VAT ₹3.92 crore (unpaid at return filing date). AO added ₹4.00 crore u/s 43B, completing reassessment ex parte. CIT(A) Findings During original assessment, AO had specifically asked about unpaid statutory liabilities. Assessee had clarified that VAT & Se...