Disallowance u/s43B of the Incometax Act

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CA Sanjay Baheti (Querist)
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21 December 2010 Our Corporate Cient generally Sales tax, Service tax, Duties etc are routed through Balance Sheet. But AO wants to disallow certain Taxes which were beyond the stipulated date. Myself objected to saying that Sec43B has no application as the taxes etc are routed through Balance sheet. But AO wants to have Sec145A workings to find out taxes impact on Profit and Loss. Is it correct.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 December 2010 Yes sir, AO is correct in requiring the workings U/s 145A.

Sub-clause (i) & (ii) of clause (a) of Section 145A and explanation thereto empowers the AO to do so.

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