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2019 (10) TMI 1403 - AT - Income TaxClaim of service tax recoverable/written off - claim of deduction on account of the service tax paid in the earlier years, but debited during the year - assessee pointed out that “the service tax recoverable is the amount of service tax on which credit is not allowed under the Service tax Act, hence, it is to be claimed in the P/L account in the audited financial statement of the assessee company.” - Claim of the assessee was not allowed by the authorities below on the ground that it was pre-mature for the assessee to avail the benefit of Cenvat credit - HELD THAT:- As under the Act, the said benefit on inputs and inputs services could be availed later also. The counter claim of the assessee is that since it realized that the said input could not be set off hence, the claim made in the books of accounts, merits to be allowed in the hands of the assessee. We are of the view that the assessee is at liberty to make the aforesaid claim in the year of its choice and the claim made in the year under consideration, merits to be allowed in the hands of the assessee. We find that the said issue has been decided by the various benches of Tribunal including the decision of Hyderabad Bench of the Tribunal in the case of M/s. NCS Distilleries P.Ltd [2014 (9) TMI 1160 - ITAT HYDERABAD]. We hold that the write off of Cenvat credit is an allowable expenditure u/s 37(1) of the Act, in the year it was debited to the books of accounts. Hence, the grounds raised by the assessee in this appeal are allowed.
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