Section 40,43B, 154, 194C of Income Tax Act, 1961— In the instant case, the Assessing Officer made an addition of 9,60,672.97 relating to service tax by invoking the provisions of section 43B and also made addition of Rs,.15,53,218 on account of job work charges by invoking the provisions of section 40(a)(ia) of the Act in a proceedings which was initiated u/s.154 of the Act.

Held that— In the instant case, no material has been brought on record to show that 9,60,672/- as service tax expenditure was claimed by the assesse. Thus, disallowance u/s.43B can be made only of an amount which was a sum payable. The relevant law under the service tax was payable on cash basis. No material is available to show that the liability of 9,60,672/- as service tax was incurred before the end of the relevant previous year under the service tax law. In the circumstances, in my considered view, the addition of 9,60,672/- by invoking the provisions of section 43B in a proceeding u/s.154 of the Act is impermissible.

A perusal of provisions of section 194C of the Act shows that a person is liable to deduct ITDS when a contract for work is of an amount more than 30,000/- or where payment for work is made to a person more than 75,000/- during the financial year. The Assessing Officer has brought no material on record to show that either of the above condition was satisfied in the instant case.

Therefore, it is not open to the Assessing Officer in a proceedings u/s.154 of the Act to hold that the assessee was obliged to deduct TDS on job work and consequently, the disallowance made u/s.40(a)(ia) of the Act it outside the jurisdiction of section 154 of the Act. I, therefore, delete both the additions made by the Assessing Officer and allow the grounds of appeal of the assessee.[SRI SACHIN SHARMA VERSUS ACIT, CIRCLE-3, JAMSHEDPUR][2018] 7 ITCD Online (102) [ITAT RANCHI]