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TMI Blog2019 (12) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... e sum in the earlier year on mercantile basis. We hold that the assessee is indeed entitled for deduction towards IFRS audit fees. - Decided in favour of assessee Deduction towards service tax credit written of - addition on the basis that it pertains to earlier period - HELD THAT:- It is not in dispute that this service tax receivable emanates out of the input services used for the purpose of business of the assessee. Once, the service tax input credit is not eligible to be utilised against the output tax, the same requires to be written off as business expenditure, which is what is done by the assessee in the instant case. There is no dispute that the service tax input credit was not eligible to be utilised towards output service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 13/12/2012 by the ld. Addl. Commissioner of Income Tax 10(3), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in upholding the disallowance of IFRS audit fees of ₹ 3,17,300/- on the ground it pertains to the period prior to the year under consideration. 2.1. We have heard rival submissions and perused the materials available on record. It is not in dispute that the fee of ₹ 3,17,300/- was paid by the assessee in respect of IFRS audit completed for the year ended 31/12/2007. We find that the same has been disallowed by the lower authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sum of ₹ 5,23,277/- was appearing as service tax receivable in the opening balance in the books of accounts of the assessee. It is not in dispute that service tax receivable is reflected under the head current assets loans and advances in the balance sheet of the assessee company. It is not in dispute that this service tax receivable emanates out of the input services used for the purpose of business of the assessee. Once, the service tax input credit is not eligible to be utilised against the output tax, the same requires to be written off as business expenditure, which is what is done by the assessee in the instant case. There is no dispute that the service tax input credit of ₹ 5,23,277 was not eligible to be utilised tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the ld. AO also, further details were submitted by the assessee. These facts are recorded by the ld. CIT(A) in page 18 para 2.4.15 of his order. We find that assessee had incurred these travelling and conveyance expenses in respect of site visits of its personnel, trainings, meetings and other official visits for which detailed break-up were filed alongwith written submissions. We find that the ld. AO in the remand report had observed that certain details furnished by the assessee contain the provision for expenses which are contingent in nature and hence, not allowable as deduction; certain expenses are reflected as receivable and later transferred to expenses by the assessee by way of journal entry in the books of accounts. In the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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