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2015 (6) TMI 1161 - AT - Income TaxAmount Written off in its books of account - Held that:- It was a trading transaction and the assessee could not recover the amount since M/s Madras Polymounds refused to pay on the ground that they could not recover from their customer outside India, it has to be treated as a trading loss. Therefore, even if it could not be allowed as bad debt, it has to be allowed as trading loss while computing the taxable income. Therefore, this Tribunal is of the considered opinion that the lower authorities are not correct in disallowing the claim of the assessee. Accordingly, orders of the lower authorities are set aside and the addition made is deleted. Disallowance u/s 14A - only objection of the ld. Counsel is that interest on loan alone could be considered for disallowance and the interest on overdraft facility which was availed for exporting the goods is for business purposes and therefore, cannot be considered for disallowance under Rule 8D - Held that:- The claim of the assessee with regard to interest on overdraft facility was not considered by either of the authorities below. Therefore, this Tribunal is of the considered opinion that the matter needs to be reconsidered by the Assessing Officer. Accordingly, the orders of the lower authorities are set aside and the issue of disallowance u/s 14A is remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider this issue in the light of the material available on record and thereafter find out whether the interest paid by the assessee on overdraft facility has to be considered for disallowance under Rule 8D or not and thereafter decide the same in accordance with law after giving a reasonable opportunity of hearing to the assessee. Allowability of club expenses - Held that:- This Tribunal is of the considered opinion that if the assessee establishes that the expenditure was incurred for the purpose of business, it has to be allowed. Therefore, this Tribunal is of the considered opinion that the matter needs to be reconsidered by the Assessing Officer. Accordingly, the orders of the lower authorities are set aside and the issue of club expenses is remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the matter afresh Deduction u/s 115JB - Assessing Officer disallowed the excess payment to the extent of ₹ 75,40,904/- from the net profit for the purpose of computation of book profit. The CIT(A) found that the assessee agreed for the disallowance by letter dated 28.12.2012 - Held that:- This Tribunal is of the considered opinion that when the assessee agreed for disallowance before the Assessing Officer, no further appeal can be entertained. Therefore, the disallowance made by the Assessing Officer with regard to excess claim of ₹ 75,40,905/- is confirmed.
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