9911796707
TMI Blog2023 (6) TMI 1322X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) AO') us 143(3) read with section 144C(13) of the Income Tax Act, 1961 ('Act) in the name of "NEC Technologies India Pvt. Ltd. (Formerly NEC India Pvt. Ltd.), the amalgamating entity, which had ceased to exist in the eyes of law, is beyond jurisdiction, illegal and bad in law 2. That on the facts and circumstances of the case and in law, the impugned order is barred by limitation, bad in law and therefore, liable to be quashed. 3. The Ld. AO has erred in disallowing advances (i.e. Input Cenvat Credit) to the tune of Rs. 91,81,394/- which the Appellant was constrained to write off during the year under consideration as per the direction of service tax department; 4. That the Ld. A.O. erred on facts and in law in issuing not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear has upheld the addition therefore the Assessing Officer was right in disallowing the claim of assessee therefore, ground of assessee may kindly be dismissed. 6. On careful consideration of above submissions, we note that the basis taken by the Assessing Officer for disallowing the claim of assessee is that the advances i.e. Input Cenvat Credit written off were not offered as revenue in the earlier year. The Assessing Officer further alleged that for AY 2012-13 the Assessing Officer made similar addition of advances written off and the ld. CIT(A) uphold the addition therefore the same is not allowable. However, the ld. CIT(DR) did not show or place any such order against the assessee on being specifically asked for. 7. On careful consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anel where adjustment of "Advances written off' is reversed. The ld. 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 co-ordinate bench of ITAT Chandigarh in the case Mohan Spg. Mills vs. ACIT (supra). It is also relevant to mention that the coordinate bench of ITAT Hyderabad in the case of NCS Distilleries P. Ltd. vs. ITO held that the amount of advance in the course of business which become irrecoverable is deductable or allowable as business expenditure/loss. Accordingly, ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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