9911796707
TMI Blog2019 (12) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Rs. 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 Rs. 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 on the ground that it is prior period expenses and since, the assessee was following mercantile system of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. 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 Rs. 5,23,277 was not eligible to be utilised towards output service tax by the assessee. In these circumstances, the action of the assessee in writing off the input service tax cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 opinion of the ld. AO, these expenses are not fully verifiable and assessee could not substantiate the veracity of the same. Accordingly, the ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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