TMI Blog2020 (12) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... because the amount of advance licence fees paid during Financial Year 2005-06 was just an advance and it converted into expenditure during Financial Year 2006-07 (Assessment Year 2007-08). Thus Ld. CIT(A) was not justified in confirming the addition made by Ld. A.O. We thus set aside the finding of Ld. CIT(A) and allow the claim of the assessee for the expenditure of licence fees - ITA No.98/Ind/2018 - - - Dated:- 2-11-2020 - Hon'ble Kul Bharat, Judicial Member And Hon'ble Manish Borad, Accountant Member For the Appellant : CA Pankaj Shah For the Revenue : Shri Puneet Kumar, Sr. DR ORDER PER MANISH BORAD, A.M: This appeal at the instance of Assessee pertaining to A.Y. 2007-08 is directed against the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and directed for framing it afresh with regard to the issue of claim of licence fee paid in the preceding year. Ld. A.O completed the assessment u/s 143(3) r.w.s. 263 of the Act and disallowed the expenditure of advance licence fee at ₹ 12,72,096/- and assessed the income at ₹ 20,02,410/-. Aggrieved assessee preferred appeal before Ld. CIT(A) but could not succeed as Ld. CIT(A) dismissed the assessee s appeal not treating it as maintainable since the assessee did not file any appeal against the order of Ld. CIT(A)-1 u/s 263 of the Act. Thereafter assessee challenged the finding of Ld. CIT(A) and filed appeal before Hon'ble Tribunal. The Hon'ble Tribunal vide ITA No.618/Ind/2013 order dated 16.11.2015 set asid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance of licence fee of ₹ 12,72,096/-. On perusal of the audited financial statement, the application for grant of licence for selling liquor for Financial Year 2006-07, the amount paid as advance licence fees and other relevant documents, we find that in the due course of busness assessee is obliged to pay licence fee in advance i.e. before the commencement of the year for which it pertains. The assessee has shown the alleged amount of ₹ 12,72,096/- paid during the financial year 2005-06 as an advance licence fee for the financial year 2006-07 (relevant to assessment year 2007-08) in its audited financial statement. The advance is duly shown in the balance sheet on the asset side. When the assessee was granted the liqu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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