ITAT makes sec. 43B disallowance even when assessee opts for presumptive taxation scheme
IN THE ITAT PANAJI BENCH
Good Luck Kinetic
v.
Income Tax Officer, Ward -2, Margao
GEORGE MATHAN, JUDICIAL MEMBER
AND N.K. BILLAIYA, ACCOUNTANT MEMBER
AND N.K. BILLAIYA, ACCOUNTANT MEMBER
IT APPEAL NO. 26 (PNJ.) OF 2013
[ASSESSMENT YEAR 2006-07]
[ASSESSMENT YEAR 2006-07]
JUNE 15, 2015
Question : Whether disallowance of Section 43B could be made even when assessee opted for presumptive taxation Scheme?
Tribunal held in favour of revenue as under:
(a) | Under the presumptive taxation scheme, income of an assessee is computed at a fixed percentage of turnover and it would be deemed that that all deductions allowable under the head business or profession have already been allowed to assessee. In other words deductions allowable under Sections 28 to 43C are deemed to have been granted to assessee. | |
(b) | Perusal of provisions of Section 43B shows that said provision is a restriction on allowance of particular expenditure, inter-alia, statutory liability, as it allows deduction of such liability on actual payment basis, i.e., expenditure shall not be allowed to be deducted unless same has been paid before the due date of filing the return. | |
(c) | Section 44AF starts with the words "notwithstanding anything to the contrary contained in Sec. 28 to 43C", whereas section 43B starts with the words "notwithstanding anything contained in any other provisions of this Act". | |
(d) | The non-obstante clause in Sec. 43B has a far wider amplitude because it uses the words "notwithstanding anything contained in any other provisions of this Act". Therefore, even assuming that the deduction is permissible or the deduction is deemed to have been allowed under any other provisions of this Act, still the control placed by the provisions of Sec. 43B in respect of the statutory liabilities still holds precedence over such allowance. | |
(e) | Hence, disallowance could be made by invoking the provisions of Sec. 43B in respect of the statutory liabilities, even though the assessee offered his income to tax on presumptive basis. |
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