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2014 (1) TMI 1231 - AT - Income TaxDisallowance of the provision for bad or doubtful debts u/s 36(2)(1) of the Act - Held that:- The decision assessee's own case for the previous years has been followed - Bad debt in respect of sales turnover which has been recognized as income is allowable subject to furnishing of details required in this behalf - the amount written off in respect of bad debts is allowable even though the individual account of debtor is not written off but a consolidated entry is passed in respect of the same by debit to P&L account - The issue need to be reconsidered thus, the matter is remitted back to the AO for fresh adjudication Decided in favour of Assessee. Disallowance of the provision for warranty and filed services - Disallowance u/s 37(2A) of the Act Entertainment expenses - Held that:- Following the decision in assessees own case for the previous year, the order of CIT(A) has been confirmed and the AO is directed to re-work the disallowance on account of provision made for warranty and field services matter remitted back to the AO for fresh adjudication Decided in favour of Assessee. Disallowance made under Rule 6D of the Act Held that:- The decision in Aorow India ltd. Vs CIT [1997 (7) TMI 92 - BOMBAY High Court] followed - The computation has to be made in accordance with rule 6D the decision of the CIT(A) upheld Decided against Assessee. Deduction u/s 80-O of the Act Net income from service Held that:- the decision in Commissioner of Income-Tax Versus Asian Cables Corporation Ltd. (No. 2) [2003 (3) TMI 87 - BOMBAY High Court] followed - for special deduction gross receipts cannot constitute the basis for deduction u/s. 80-O of the Act - Deduction to be allowed is only on net income basis Decided against Assessee. Disallowance of depreciation on assets on lease - Held that:- The claim of the depreciation by the assessee is totally based on paper evidence whereas the AO has rejected the claim based on the categorical denial by Gujarat Energy Development Agency (GEDA) which is an autonomous body of the State of Gujarat - the lower authorities have accepted this to be a financial transaction, in that case, the other claims of the assessee has to be verified thus, the matter remitted back to the AO for fresh adjudication Decided partly in favour of Assessee. Disallowance towards cost of sales Held that:- There is no dispute that such expenditure is allowable as deduction, provided it is in regard to an expenditure incurred during the year, even if it is not due for payment on account of bill/debit note having not been received - However, no such evidence was brought before the lower authorities nor before us there was no reason to interfere with the findings of the Ld. CIT(A) Decided against Assessee. Deletion made on account of fees paid for technical services Deletion on disallowance of notional Interest - Held that:- The issue has already been settled in assessees own case for the previous years, and was decided in the favour of Assessee Thus, the Appeal of the Revenue dismisses Decided against Revenue.
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