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2013 (2) TMI 267 - HC - Income TaxDisallowance of business loss - Tribunal sett aside the matter of to the file of AO - Held that:- When the Tribunal has taken care to remand the issue to the AO to examine all relevant aspects of the matter, such as, whether the payment was actually made, whether Bombay High Court had allowed such claim and whether the assessee had made such a claim for any subsequent years, to our mind, there is nos reason to interfere -in favour of assessee for statistical purposes. Disallowance of bad debts - ITAT deleted the addition - Held that:- Tribunal committed no error in deleting the addition as assessee having bad debts written off in the books of accounts, it was thereafter not necessary any further to establish that bad debt had in fact become bad - in favour of assessee. Disallowance of loss on wind mills and change in the method of valuation of stock - ITAT deleted the addition - Held that:- As the assessee company in the annual report of the Board of Directors had noted that the Government was not coming out with long term policy for development of non-conventional energy sources which prompted the Company to reduce the energy devision during the year. The machines were also seized by the Bank having a first charge under the order of the Bombay High Court. Considering such aspects, finding that the title of the machines was also in doubt, the Company decided to write off the same. Revenue’s objection that the same was a capital loss was rejected observing that windmills were treated as stock in trade in the assessee’s project. The Revenue’s contention that the assessee had altered its method of valuation was also dealt with observing that the assessee found that windmill had no realizable value and therefore its valuation was changed to adopt to the cost or its realizable value whichever is less. Such method was found acceptable by different High Courts. Here also, the Tribunal having considered all relevant aspects of the matter and having come to the conclusion that the assessee was justified in writing off the investment in the windmills as bad debt - in favour of assessee.
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