M/S SHIRODE AUTOMOBILES PVT LTD,AHMEDNAGAR vs. ASST COMMISSIONER OF INCOME TAX, AHMEDNAGAR CIRCLE, AHMEDNAGAR

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ITA 501/PUN/2020Status: DisposedITAT Pune18 November 2021AY 2014-201517 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amount paid as service tax under VCES, even though relating to earlier years, should be allowed as a deduction in the current year of payment. This is because the service tax was included in the total income in the earlier years, and its subsequent payment qualifies for deduction.

What were the facts?

The assessee claimed a deduction for Rs. 12,25,998/- paid as service tax under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES). This service tax pertained to incentives received in earlier financial years (2007-08 to 2012-13). The Assessing Officer disallowed this as a prior period expenditure.

What were the issues?

Whether service tax paid under VCES for earlier years is deductible in the year of payment, and whether service tax is includible in the total income.

Which sections of the Income-tax Act were involved?

Section 43B,Section 145A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI R.S. SYAL

For Appellant: Shri Sanket M.Joshi
For Respondent: Shri S.P. Walimbe

आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-2, Pune 4. The Pr. CIT-1, Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6.

आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune M/s. Shirode Automobiles Pvt. Ltd.,

Date 1. Draft dictated on 17-11-2021 Sr.PS 2. Draft placed before author 18-11-2021 Sr.PS 3. Draft proposed & placed -- JM before the second member 4. Draft discussed/approved -- JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement Sr.PS on 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *

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