TaxTMI 
TaxTMI 
2014 (4) TMI 202
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.... for which separate rate of depreciation is applicable. 2. Deleting the disallowance of service tax expenses of Rs. 8,57,261/- despite the fact that the expenditure pertains to earlier years. That the appellant craves to add, amend, alter, delete or modify any or all the above grounds of appeal before or at the time of hearing. 2. Ground No.1 of this appeal relates to the deletion of disallowance made by the Assessing Officer on account of higher rate of depreciation on civil work for foundation, electrical equipments and evacuation charges relating to the wind mill. 3. As regards to this issue, learned counsel for the assessee at the very outset stated that this issue is covered in favour of the assessee in assessee's own case in ITA No. 294/Jodh/2012 for the A.Y. 2009-10 vide order dated 24/01/2013. Copy of the said order was furnished. 4. The aforesaid contention of the learned counsel for the assesse was not controverted by the learned D.R. 5. After considering the submissions of both the parties and material available on record, it is noticed that a similar issue having identical facts has already been decided in favour of the assessee by this bench of the Tribunal vide ....
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....please dismiss the ground of appeal of the department in this respect in the interest of equity and justice. Against the ground no. 3 i.e. deletion of disallowance of depreciation of Rs. 6,57,214/- claimed on electrical supply line and others. We have to submit that the Ld. CIT (Appeal), Udaipur has discussed the issue in detail at page no. 16 of his order and has appreciated the arguments, evidences, facts and circumstances of the case in their true perspective and has rightly considered the issue in favour of assessee and accordingly deleted the disallowance made by the A.O. on this account. There are neither new material evidences available on records nor any latest decisions on the issue pronounced which is against the holding by CIT (Appeals). Hence we request your goodself to please dismiss the ground of appeal of the department in this respect in the interest of equity and justice. Considering the overall facts of the case and the position of law, the deletion made by the CIT (Appeal) against each additions are legal and as per facts and are in line to the ratio of judgments placed before him in the course of appeal proceedings. Hence we request your goodself to please dis....
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.... assessee in the assessment of income of the year under consideration. The Learned Assessing officer has not appreciated the true and correct facts of the case and the position of law. There was no dispute or doubt about the payment of service tax and further it is also verifiable from records that the income related thereto has been declared in account though in different years. It is also verifiable that neither expenditure of this nature claimed in earlier year nor allowed by the learned Assessing officer in the assessment of earlier years. (ii) In preceding year the expenditure of service tax was neither charged to profit and loss account nor claimed as expenditure under the bonafide belief and impression that service tax is not payable on foreign commission income. Later on after clarification about the liability of service tax on foreign commission income and further clarified by the service tax dept that credit is not allowable on service tax paid against foreign commission income, the assessee had made payment of the same. The matter related to chargeability of service tax was settled in the year under consideration only and hence payment was made on total foreign commissi....
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....e year of payment only. In the business of this nature the liability of service tax was not settled in the preceding year and the business was conducted since preceding year and continued in the year under consideration. There was no change in the nature of business and the payment of service tax liability has been claimed as expenditure only on settlement of law and issue of clarification by the relevant department. The payment was made to service tax department Government of India after clarification received from them. Hence the payment made to them was business expenditure in the year of payment only. Under such circumstances the Learned Assessing officer has wrongly inferred that the expenditure has been allowed on proportionate basis of income declared by the assessee. Further it is settled law by now so long as the expenditure incurred "wholly and exclusively" for the purposes of business, nothing should come in the way of allowing deduction even if some benefit from the expenditure has flown to anybody else or to the assessee in the succeeding year. No part of the service tax expenditure incurred by the assessee can be related to the non business purpose of the assessee. Un....