If statutory liabilities are not routed through the profit and loss account, will they still be disallowed under Section 43?

Grand Motors Vs ITO (ITAT Raipur)

Abstract: In a cross appeal filed by both the assessee and the department against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], the focus was on disallowances under Section 43B of the Income Tax Act for the assessment year 2018-19. The case stems from an intimation issued by the Centralized Processing Centre (CPC) under Section 143(1), increasing the assessee’s taxable income due to unpaid VAT, Entry Tax, and CST liabilities. The assessee argued that the VAT amounting to ₹6,23,2262, although unpaid within the

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