Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 688 - ITAT KOLKATADisallowance towards bad debts and advances - Held that:- The claim of bad debts in respect of debts due from Bajaj Glass Centre amounting to ₹ 1,13,343/-, we find that assessee had actually sold materials worth ₹ 4,13,343/- vide Bill No. PE/0607/0032 dated 13.07.2006 and had received only ₹ 3 lacs against the same and the party had withheld the balance due to inferior quality of material supplied. Under these circumstances, the assessee chose to write off the balance sum of ₹ 1,13,343/- in his books as irrecoverable and claimed the same as bad debt in the return of income. It is not in dispute that the assessee had duly offered the sale made to said party as income in the return of income of earlier year. We find that assessee is duly entitled for the same as deduction u/s. 36(1)(vii) of the Act read with section 36(2) of the Act. - Decided in favour of assessee Disallowance of C&F charges invoking the provisions of section 40(a)(ia) read with section 194C - Held that:- We find that from the perusal of the bills submitted by the assessee in his paper book and from the perusal of the orders of the lower authorities, there is no clear finding given with regard to the fact as to whether profit element has been loaded by C&F Agent in his bills seeking reimbursement of expenses. We find that this finding is very crucial to decide the impugned issue before us. We hold that no tax needs to be deducted u/s. 194C of the Act for the reimbursement portion. In the facts and circumstances of the case, we deem it fit and appropriate in the interest of justice and fair play to set aside this issue to the file of the Ld. AO to give a clear finding from the verification of the bills as to whether any profit element is loaded by the C&F Agent while seeking reimbursement of expenses from the assessee. The assessee is also directed to adduce adequate cooperation and produce evidences in support of his contentions. - Decided in favour of assessee for statistical purposes. Disallowance of sales promotion expenses - Held that:- We find that incurrence of these expenses by the assessee are in the normal course of business and adequate evidences were also submitted in this regard. In any case, there cannot be any addition made by the lower authorities on estimated basis without bringing any material on record for justifying the said addition. - Decided in favour of assessee.
|