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2013 (2) TMI 551 - AT - Income TaxClaim of Bed Debts in the revised return - The assessee’s claim of bad debts written off was rejected since the assessee did not produce necessary evidence to prove the fact that the bad debts were actually written off in its books of account - held that:- no material was produced by the assessee which could prove that the debts were actually written off in the books of account. - the assessee has failed to even satisfy the first precondition envisaged in S.36(1)(vii) of writing off of the debt in its books of account. - None of the ledger account copies submitted in the paper-book show ‘nil’ balance, which should have been the case, in the event of the actual write off of the debt. - Claim disallowed - Decided against the assessee. Addition on account of increase in unsecured creditors - held that:- Ongoing through the confirmation letters, it is seen that in many of the cases, the address of the creditors alongwith their Permanent Account Number is mentioned therein. Thus, in these cases, since the persons are income-tax assessees, necessary enquiry could have been conducted for finding out the credit-worthiness of the creditors and the genuineness of the claim made by the assessee with regard to the unsecured loans shown against these persons. - no enquiry has been made to find out as to whether the creditors whose details were furnished actually had advanced the monies to the assessee - matter remanded back to AO.
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