TMI Blog2014 (7) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... debt, in fact, has become irrecoverable - It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee – Decided against Revenue. Prior paid expenses – Held that:- CIT(A) rightly of the view that the assessee rightly submitted that “out of ₹ 4.8 lacs, ₹ 1,690,585/- relate to purchases of components, the same entering the stocks during the year upon the purchases made, cannot be considered as disallowable prior period expenses and there is another identical amount ₹ 90,134/- of Courrier DHL Worldwide, which amount had been in dispute was ultimately settled towards the end of the year and considered as expenditure upon settlement and payment and can be considered as occurring only during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove extent. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as the Act ) was framed vide order dated 31/12/2009, thereby the Assessing Officer (AO in short) made disallowance of bad debts amounting to ₹ 10,77,651/- and disallowance of prior period expenses amounting to ₹ 4,80,020/-. Against this, the assessee filed an appeal before the ld.CIT(A), who after considering the submissions of the assessee, partly allowed the appeal of the assessee. Against the order of the ld.CIT(A), now the Revenue is in appeal before us. 3. First ground is against deletion of disallowance of bad debts amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. The ld.counsel for the assessee submitted that the amount was offered for taxation in the earlier years. He submitted that verification at this stage would be only an academic exercise as the assessee is subjected to the provisions of MAT. We find force in the contention of the ld.counsel for the assessee. The ld.CIT(A) has given a finding on fact that the AO has made disallowance in respect of bad debts merely on the ground that the assessee has not been able to prove that the debt has become bad. Respectfully following th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t (Feb.07) hence can be considered as occurring only during the year . The submissions of the appellant are justified to that extent and accordingly the addition of ₹ 2,50,719/- is deleted and balance ₹ 2,29,301/- is confirmed. This ground is partly allowed. 6.1. This finding on fact passed by the ld.CIT(A) is not controverted by the Revenue by placing of any contrary material on record, hence, we do not find any infirmity in the order of the ld.CIT(A), same is hereby upheld. Thus, this ground of Revenue s appeal is also rejected. 7. Remaining grounds are general in nature need no independent adjudication. 8. In the result, Revenue s appeal stands dismissed. Order pronounced in Court on the date mentioned hereinabov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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