TMI Blog2023 (6) TMI 1322X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;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. - SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground no. 1, 2 4 hence the same are dismissed as not pressed. Ground no. 3 of assessee 4. The ld. Senior counsel placing reliance on the order of ITAT Chandigarh bench in the case of Mohan Spg. Mills vs. ACIT reported as [2012] 54 SOT 524 (Chd.) submitted that the write off of Cenvat credit, which could not utilized by assessee against excise duty payable on manufactured items due to closure of business, was allowable as business expenditure. He further submitted that the authorities below have grossly 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; therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or expenditure is allowable where four conditions are simultaneously fulfilled viz. i. The expenditure should not be in the nature described u/s. 30 to 36 of the Act; ii. The expenditure must have been laid out wholly and exclusively for the purpose of business of assessee; iii. The expenditure must not be personal in nature and iv. The expenditure must not be capital in nature. 8. In the facts of the instant case, During AY 2015-16 Assessee Company has written off advances amounting to Rs 9,081,394/-. The amounts were earlier parked in Input service tax receivable account pertaining to revenue expenditure in the nature of rental, clearing and forwarding charges, security expenses etc. however, on service tax audit, such amounts were re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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