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2014 (4) TMI 782 - AT - Income TaxDebit balance written off as bad debt – Applicability of TRF. LTD. Versus COMMISSIONER OF INCOME-TAX [2010 (2) TMI 211 - SUPREME COURT] – Held that: - The assessee has furnished the detail of the irrecoverable advances in composite amount without segregation of advances and bad debts - The CIT(A) has not discussed about the not furnishing of details by the assessee in respect of 9 units/branches - the assessee has not furnished the details by segregating the bad debts and advances treated as irrecoverable and written off during the course of assessment proceedings – If the details were furnished before CIT(A) then the AO should have been given opportunity to consider the same and rebut the same if so desired. As far as the claim of bad debts regarding treating the same as irrecoverable – there was no error in the order of CIT(A) while allowing the claim following TRF. LTD. Versus COMMISSIONER OF INCOME-TAX [2010 (2) TMI 211 - SUPREME COURT] – it is not clear from the record that how much amount out of the total claim of the assessee is regarding the advances given to the various parties and whether the advances were given during the course of business of the assessee and can be allowed as business loss, which has not been properly examined, may be for want of necessary details – thus, the issue regarding claim of writing off of advances treating them as irrecoverable is remitted back to the AO for fresh adjudication – Decided partly in favour of Revenue.
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