Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 812 - AT - Income TaxWritten off of Losses on amalgamation Held that:- The assessee conceded that paper books giving details of the assets written off were not supplied to the AO and for the first time these details were given to the CIT(A), and no plausible reason was given for not submitting these documents to the AO. The judgments relied on by the assessee do not come to the rescue of assessee. In favour of revenue Calculation of book profit u/s 115JB AO reduce the book profits by inventories written off, advances written off, discarded assets and bad debts written off Held that:- As per the provisions of Sec. 115JB and has rightly observed in his order that he book profit cannot be adjusted except for the items specified in the section. Therefore, the deduction claimed by the assessee in the book profit has rightly been disallowed by the AO. In favour of revenue Inventories written off as obsolete stock - Assessee had acquired the business of the demerged company as a going concern Held that:- assessee has not placed on record any document to show that the assessee had taken over the amalgamating companies as a going concern. Moreover, it is not the case of the assessee that the inventories are being written off for being obsolete alone. The assessee has stated before the AO that it could not receive the amounts from various parties and when it has become bad, the same was written off. The assessee was unable to show how and why the inventories have become obsolete. The assessee failed to tender any evidence before the AO. In favour of revenue Write off the losses Capital or revenue nature - Incurred in acquiring the assets and liabilities of the amalgamating companies Held that:- In the present case, there was amalgamation of four companies into the assessee company. The assessee intends to write off the losses incurred by the assessee in acquiring the assets and liabilities of the amalgamating companies, which is capital in nature. In favour of revenue Bad debts Assessee had not written off the debts in the books of account - Held that:- Assessee is claiming write off of bad debts in violation of the provisions of section 36(2)(i). The assessee has not placed on record the scheme of amalgamation either before the lower authorities or before the Tribunal. Therefore, claim of bad debts, inventories etc. of the assessee has rightly been disallowed by the AO. In favour of revenue
|