MEDIA EXPERTS P. LTD,MUMBAI vs. DCIT CIR 3(2), MUMBAI

सुनवाई की तायीख / Date of Hearing : 06.10.2016 घोषणा की तायीख /Date of Pronouncement : 19.10.2016 आदेश / O R D E R PER D. KARUNAKARA RAO, AM:

This appeal filed by the assessee on 27.9.2013 is against the order of the CIT (A)-4, Mumbai dated 19.7.2013 for the assessment year 2010-11. In this appeal, assessee raised the following ground which read as under:- “Ld CIT (A) has erred in confirming the action of the AO in disallowing interest paid on service tax of Rs. 4,34,210/- on the ground that interest on service tax is not covered under the purview of section 43B(a) of the Act. On the facts and in the circumstances of the case and in law, the disallowance of Rs. 4,34,210/- ought to be deleted”.

2. Briefly stated relevant facts of the case are that the assessee is engaged in the business of „investment, finance, commission and consultancy‟. Assessee filed the return of income declaring the total income of Rs. 95,36,550/- under normal provisions and Rs. 94,58,709/- u/s 115JB of the Act. Assessment was completed u/s 143(3) of the Act and the assessed income was determined at Rs.99,70,760/-. In the assessment AO made disallowance of Rs. 4,34,210/- on account of payment of interest on service tax to the Government. Aggrieved, assessee carried the matter in appeal before the first appellate authority.