In the Audit report under section 44AB an amount of GST payable to totaling Rs. 67, 47. 034 remained unpaid. The Auditor reported in clause 26(i)(B) (b) ass duties and taxes not paid on or before the date of the audit report.The AO disallowed the claim. CIT(A) partly allowed the claim. On appeal the Tribunal held that the GST amount is paid before filing return, and it was not treated as an expenditure in profit and loss account, and no deduction was claimed, therefore, disallowance under section 43B is unjustified.(AY. 2020-21)
P.K. Parikh HUF. v. ITO (2024) 206 ITD 333 (Ahd) (Trib.)
S.43B: Deductions on actual payment-Current liability-GST amount is paid before due date of filing of return-No disallowance can be made.[S. 44AB 139(1)]