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2013 (10) TMI 865 - AT - Income TaxAllowance of arbitration award as expenditure – Held that:- Payment to Software Technology Park of India of Rs. 5,75,000/- due to award of Arbiter, the arbitration was started in F.Y. 05- 06 itself and hearing was going on. The assessee gathered that ultimate analysis it has to pay in pursuant to award to the Software Technology Park of India. The award was passed on 20th July, 2006 and accounts were finalized and audited on 12th September, 2006 i.e. after the date of order - Addition confirmed by the CIT(A) under year consideration is upheld. However, this can be allowed as an expenditure in year 07-08. Allowance of Bad Debts u/s 36(1)(vii) of the Income Tax Act – Held that:- Reliance has been placed upon the judgment in the case of TRF Ltd. v CIT [2010 (2) TMI 211 - SUPREME COURT], wherein law is settled and assessee has written off this bad debt in the account itself sufficient to claim bad debt which has been done in the account – Decided in favor of Assessee. Disallowance of Rs.2,00,000/- on account of misappropriation of cash for which legal action has been taken by the appellant - The appellant claim Rs. 2 lacs under the the head misappropriation of cash from the bank account allegedly made by one of its employees – Held that:- After considering the facts of the case as revealed from the copy of FIR that there was misappropriation of fund for Rs. 2 lacs and placed the evidences on record. He has established the misappropriation of fund by the employees – Allowed as expense as various courts have held.
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