Col. D.Pradeep Kumar, CHENNAI V. DCIT, CHENNAI

ITA 1095/CHNY/2017

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0727 (ITAT-CHENNAI)
• Duration Of Justice: 5 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 01-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय -ी महावीर िसंह, उपा34 एवं माननीय -ी मनोज कु मार अ8वाल ,लेखा सद; के सम4। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1095/Chny/2017 (िनधाDरण वषD / Assessment Year: 2013-14) Col. D. Pradeep Kumar Flat No. C-3, Door No. 56/105, Shrishti, HMH Plaza, G.N. Chetty Road, T.Nagar, Chennai – 600 017. बनाम/ V s. DCIT Non Corporate Circle -2(1), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AN CP K-0 4 2 3 -G (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : None थ की ओरसे/Respondent by : Shri AR V Sreenivasan (Addl. CIT) –Ld. DR सुनवाई की तारीख/ Date of Hearing : 04-07-2022 घोषणा की तारीख / Date of Pronouncement : 04-07-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. In this appeal for Assessment Year (AY) 2013-14, the sole grievance of the assessee is disallowance of Service Tax for Rs.71.44 Lacs u/s 43B. At the time of hearing, none appeared for assessee. However, we find that similar issue has already been adjudicated by us in assessee’s own case for AY 2012-13, ITA No.2580/Chny/2016 as under: - ITA No.1095/Chny/2017 - 2 - 5. Upon careful consideration of factual matrix, we find that the assessee is following exclusive method to account Service Tax liability in the Books of Accounts and therefore, the argument that the Service Tax was not routed through profit & Loss Account would not hold good. At the same time, we find that as per extant Service Tax Rules, the Service Tax liabilities arise in the hands of the assessee on receipt basis. Until the consideration is received, Service Tax is not payable. Therefore, the liability to pay Service Tax, at year-end, may not have actually arisen in the hands of the assessee. Therefore, the disallowance has to be made only to the extent the liability to pay Service Tax Liability had arisen in the hands of the assessee at year-end. The Ld. AO is directed to verify this fact and restrict the disallowance to that extent only.” The Ld. Sr. DR submitted that similar directions may be given in this year. Considering the same, the matter stand remitted back to the file of the Ld. AO with similar direction. 2. The appeal stands allowed for statistical purposes. Order pronounced on 04 th July, 2022. Sd/- (MAHAVIR SINGH) उपा34 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद; / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 04-07-2022 JPV JPVJPV JPV आदेश की Xितिलिप अ 8ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF