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2012 (9) TMI 33 - AT - Income TaxBad debts - dis-allowance on ground of inability of assessee to justify claim of bad debt - AY 04-05 - assessee company being registered as a sick industrial company in the year 2004 - Held that:- Though after the amendment in S36(1)(vii) w.e.f. 01-04-1989, it is not obligatory on the part of the assessee to prove that the debt written off is indeed a bad debt for purposes of allowance u/s. 36(1)(vii). However, it is also a fact that the assessee has to establish that it fulfils the conditions laid down u/s. 36(2). Since assessee stated that the requisite documents could not be filed as the assessee company at the relevant time was a BIFR company and its proposal to revive was pending before BIFR. In the interest of justice, we restore this matter to the file of AO to decided same afresh Rebate and claims - dis-allowance on ground that same was allowed to one party - business expediency - Held that:- There is no document placed on record to justify that rebate of the substantial amount was granted to M/s. SMT on account of defect/damage in the goods. Also, no details are filed in respect of - when the supply was made to the above party and how much amount was due from it, why shares pledged by SMT were not invoked in event of non-payment. Hence, CIT(A) was justified in holding that assessee has failed to discharge the onus that the said rebate was due to business expediency - Decided against assessee Dis-allowance u/s 43B of Rs 8.71 crores - interest to financial institution - assessee contending mistake in clubbing and contending dis-allowance of Rs 6.11 crores - Held that:- During course of hearing, assessee was unable to file any document to substantiate that interest due to financial institution was Rs.6.11 crores. dis-aloowance confirmed - Decided against assessee Dis-allowance u/s 14A - computed in accordance with Rule 8D - AY 05-06 - Held that:- CIT(A) was not justified in computing dis-allowance by applying Rule 8D as the said Rule is not applicable to the AY 2005-06. See Godrej & Boyce (2010 (8) TMI 77 - BOMBAY HIGH COURT). Matter restored to file of AO
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