2014 (4) TMI 697

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....ent : Mr. Ashok Suri ORDER Per Amit Shukla, J. M. The present appeal has been preferred by the assessee challenging the impugned order dated 7th September 2011, passed by the learned Commissioner (Appeals)-II, Mumbai, for the assessment year 2007-08. The sole dispute in this appeal is that the learned Commissioner (Appeals) has erred in law and on the facts of the case in disallowing Rs. ....

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....e assessee has made any efforts to recover the claims from the clients. Accordingly, he disallowed the claim of Rs. 1,09,184. 3. Before the learned Commissioner (Appeals), it was submitted that the assessee has been billing its clients towards professional fees relating to audits and also debiting them with service tax leviable on the said fees. Some of the clients did not make the payment of s....

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.... the respective clients and, therefore, the same cannot be allowed as bad debt. Further, the amount is still receivable from the clients which can be received in the subsequent years and then it will form part of income of that assessment year in which it is received because the assessee is following cash system of accounting. Thus, he confirmed the said addition. 4. Before us, the learned Coun....

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.... 6. We have heard the rival contentions and perused the findings of the learned Commissioner (Appeals). In this case, it has not been disputed that the assessee has been billing its client towards professional fees which also includes service tax leviable on the above fee. It is the liability of the assessee to deposit the service tax which is to be collected from the clients. If any of the client....