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2013 (11) TMI 146 - AT - Income TaxBad debts written off Held that:- The officers didnt went into the inquiry as to what goods the assessee wanted to purchase Whether the debtors deals in those goods or not - It is not known whether the assessee deals in such goods which were to be supplied by the impugned four parties In order to decide that the debts falls in trading field or capital field the purpose for which the advance were given needed to be known The issue went back to the files of AO for fresh adjudication Decided against Revenue. Bad debts Held that:- Following the binding judgment in TRF Ltd. vs. CIT Ranchi [2010 (2) TMI 211 - SUPREME COURT] - The bad debts written off in the books of account should be allowed as an allowable expenditure and the assessee does not have to establish that written off debts have become bad and irrecoverable Decided against Revenue. Disallowance u/s 40(a)(ia) Reimbursement of expenses to clearing and forwarding agent Labour charges Held that:- Following Maryline Shipping and Transports Ltd [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] - The provisions of section 40(a)(ia) of the Act have no application to the amounts already paid by the assessee during the financial year and they are applicable to the amounts payable as appearing in the balance sheet as on 31st March of the relevant financial year Due to absence of discussion by lower authorities and for further examination of actual payment made by the assessee Issue set back to the files of AO for fresh adjudication Decided in favour of Revenue.
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