Income Tax Appellate Tribunal - Mumbai
Jess Ideas Pvt. Ltd., Mumbai vs Dcit Cir. 6(3)(2), Mumbai on 25 June, 2018
Aayakr ApIlaIya AiQakrNa " J " nyaayapIz maM u b a[- mao .
IN THE INCOME TAX APPELLATE TRIBUNAL "J" BENCH, MUMBAI
श्री राजेंद्र, लेखा सदस्य एवं श्री पवन ससंह न्याययक सदस्य के समक्ष ।
BEFORE SRI RAJENDRA, AM AND SRI PAWAN SINGH, JM
Aayakr ApIla saM . / ITA No. 6524/Mum/2016
(inaQa- a rNa baYa- / Assessment Year 201 2-13)
Jess Ideas Pvt. Ltd. DCIT, Circle-6(3)(2)
416, Shivji Krupa 544, Mumbai
Adenwala Road Vs.
Matunga
Mumbai
(ApIlaaqaI- / Appellant) .. (p`%yaqaaI- / Respondent)
स्थायी ले खा सं . / PAN No.AACCJ0216A
अपीलाथी की ओर से / Appellant by : Shri Paresh Saparia, AR
प्रत्यथी की ओर से / Respondent by : Shri Aaraj Garodia, DR
सन
ु वाई की तारीख / Date of hearing: 25-06-2018
घोषणा की तारीख / Date of pronouncement : 25-06-2018
AadoSa / O R D E R
PER PAWAN SINGH, JM:
This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-12, Mumbai, [in short CIT(A)] in appeal No. CIT(A)-12/IT 01/DCIT 6(3)(2)/15-16 dated 8.8.2016 under section 253 of the Income Tax Act, 1961(hereinafter 'the Act'). The 2 ITA No . 65 2 4 / Mu m /2 0 16 Assessment was framed by the Deputy Commissioner of Income Tax, 6(3)(2), Mumbai (in short DCIT) for the assessment year 2012-13 order dated 23.2.2015. The sole ground of appeal raised by the assessee relates to disallowance under section 43B on account of service tax, which was not due.
2. At the outset of hearing, the Ld. A.R. of the assessee submits that the ground of appeal raised by assessee are covered by the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Ovira Logistics (P) Ltd. (2015) 377 ITR 129 (Bombay). On the other the Ld. D.R. for the assessee after going through the contents of the grounds of appeal and the order of High Court In Ovira Logistics(P) Ltd, fairly considered that the grounds raised by assessee are covered in favour of the assessee.
3. we have considered the contentions of both the ld representatives of the parties and have gone through the orders of the lower authorities. The sole Ground of appeal relates to disallowance disallowance under section 43B of the Act of ₹9,75,079/- on account of service tax payable, which was not due. W e have seen that the Hon'ble jurisdictional High Court in the case of CIT Vs. Ovira Logistics Pvt. Ltd. (supra) while considering the identical question of law held that section 43B of the Act does not contemplate liability to pay service tax before actual receipt of funds in the account of the assessee. The liability to pay service tax to the Government will arise only upon receiving the funds and not otherwise. Accordingly, when services are rendered, the liability to pay service tax in respect of consideration payable arise only upon receipt of such consideration and not otherwise. Considering the decision of Hon'ble jurisdictional Hig h Court, we find that ground of appeal raised by assessee is covered in favour of the assessee.
3ITA No . 65 2 4 / Mu m /2 0 16
4. In the result, the appeal filed by the assessee is allow ed.
Order pronounced in the open court on 25-06-2018.
Sd/- Sd/-
(राजेंद्र/RAJENDRA) (पवन ससंह /PAWAN SINGH)
(लेखा सदस्य / ACCOUNTANT MEMBER) (न्याययक सदस्य/ JUDICIAL MEMBER)
मंब
ु ई, ददनांक/ Mumbai, Dated: 25 -06-2018
Venu Gopal/Sr.PS
आदे श की प्रतिलिपि अग्रेपिि/Copy of the Order forwarded to :
1. अपीलाथी / The Appellant
2. प्रत्यथी / The Respondent.
3. आयकर आयक् ु त(अपील) / The CIT(A)
4. आयकर आयक् ु त / CIT
5. ववभागीय प्रयतयनधि, आयकर अपीलीय अधिकरण, मुंबई / DR, ITAT, Mumbai
6. गार्ड फाईल / Guard file.
आदे शानुसार/ BY ORDER, सत्यावपत प्रयत //True Copy// उि/सहायक िंजीकार (Asstt. Registrar) आयकर अिीिीय अधिकरण, मुंबई / ITAT, Mumbai