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Tax Publishers
Writing off of Input Cenvat Credit - consequential
to a departmental service tax audit - whether an allowable expenditure under
section 37(1)
Facts:
Assessee
wrote off input cenvat credit post facto a service tax departmental audit.
Revenue's contention was that the same was not an allowable expenditure as it
was not offered to tax in earlier years due to assessee following the exclusive
method of accounting. Assessee's plea was that it was writing off an advance
which arose out of a business thus allowable under section 37(1). On appeal
against the views of AO and DRP -
Held
in favour of the assessee that input cenvat credit which had to be written off
was a business expenditure allowable under section 37(1).
Applied:
Mohan Spg. Mills v. ACIT reported as (2012) 54 SOT 524
(Chd.) : 2012 TaxPub(DT) 2795 (Chd-Trib)
Case: NEC Technologies India (P) Ltd. v. Addl. CIT 2023 TaxPub(DT) 3811
(Del-Trib)
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