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2023 (6) TMI 1322 - AT - Income TaxWrite off of Cenvat credit - Allowable as business expenditure/loss - Advances (i.e. Input Cenvat Credit) Appellant was constrained to write off during the year under consideration as per the direction of service tax department - HELD THAT:- As is evident, the input cost is revenue in nature and accordingly service tax paid on such revenue costs is also eligible to be claimed as revenue expenditure. Further, the matter is covered as the Assessee Company has been given relief by Hon'ble DRP panel where adjustment of "Advances written off' is reversed. CIT(DR) have not controverted above factual position. Therefore we are inclined to hold that the input cost is revenue in nature and accordingly service tax paid on such revenue cost is also eligible to claim as revenue expenditure u/s. 37(1) of the Act. Our conclusion further gets support from the order of Mohan Spg. Mills [2013 (11) TMI 113 - ITAT CHANDIGARH] It is also relevant to mention that in the case of NCS Distilleries P. Ltd. [2014 (9) TMI 1160 - ITAT HYDERABAD] held that the amount of advance in the course of business which become irrecoverable is deductable or allowable as business expenditure/loss.
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