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2012 (12) TMI 782 - AT - Income TaxDelayed PF Payments u/s 43B – Following the decision of court in case of [CIT vs Cranes Ltd, 2007 (10) TMI 386 - BOMBAY HIGH COURT] if payment have been made during the financial year or before filing of return amount in question has to be allowed - matter should be remitted back to the file of the AO to verify the claim made by the assessee. Disallowance on gifts and presentation – Held that:- Although expenditure incurred was wholly and exclusively for carrying out business but expenditure without evidence were not allowable - FAA has power coterminous with AO, but then his duties are same as that of the AO. Any adverse inference has to be confronted to the assessee before deciding an issue against the assessee - matter should be restored back to the file of the AO for fresh adjudication. Disallowance of Commission – Held that:- Though assessee has claimed that necessary evidences were produced, yet from the order of the AO, it is clear that factum of rendering of service was not established. FAA has doubted the genuineness of the papers, but did not afford an opportunity to the assessee to rebut his conclusions. As FAA should have confronted the assessee with his above findings & as the AO had no occasion to go through the paper, so, in the interest of justice,the matter remitted back to the file of the AO. Disallowance of Bad Debts – Held that:- Once assessee writes off the bad debts in his Books of Accounts he has to prove nothing - as decided in T.R.F. LTD. Versus COMMISSIONER OF INCOME-TAX [2010 (2) TMI 211 - SUPREME COURT] it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee - Appeal of the assessee stands partly Allowed.
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