S.43B Disallowance not Applicable When No Deduction Claimed and Liability Reported as Current Liability: ITAT

ITAT (Income Tax Appellate Tribunal) ruled that disallowance under Section 43B of the Income Tax Act is not applicable when no deduction has been claimed for an expense and the corresponding liability is reported as a current liability in the financial statements. Section 43B relates to the disallowance of certain expenses if they are not actually paid within the prescribed time. The tribunal's decision clarifies that if the expense hasn't been claimed as a deduction in the first place, the provisions of Section 43B are not triggered, providing relief to taxpayers in such scenarios.