VMS EVENTS PRIVATE LIMITED,DELHI vs. ADCIT, CPC, BANGALURU

[ PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A) in short], dated 28.02.2021 passed u/s 250 of the Income Tax Act, 1961 (the Act, in short) for Assessment Year 2017-18. 2. At the outset, from the perusal of the appellate order, it is seen that the assesse has filed written submission with respect to the addition made u/s 43B of the Act. The assessee in its submission claimed that the service tax was not routed through P&L Account and thus no expenditure was claimed. In this regard, reliance is placed on VMS Events Private Limited vs. ADCIT, CPC the judgment of Hon’ble Jurisdictional High Court in the case of CIT vs. Nobel and Hewitt India Pvt. Ltd. [2008] 305 ITR 324 (Del.) However, Ld. CIT(A) has not considered the submissions of assessee on merits and confirm the addition based on auditor remark in tax audit report. Under these circumstances, in our considered opinion, matter needs reconsideration on merits of the issue. Accordingly, we set aside the order of Ld. CIT(A) and restore back the appeal to his file with the directions to decide the same in the light of submission of the assessee and also keeping in mind the amendments made in the Act. The assesse is also directed to file all the necessary details/submission in respect of the claim made that no expenses was claimed on account of service tax in terms of amended law.