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2018 (5) TMI 1017 - AT - Income TaxDisallowance on account of sundry balances written off being capital loss and not allowed as business expenses under section 36(1)(vii) - Held that:- The money due from sundry debtors which could not realized till the last year has to be allowed under section 36(i)(vii). In view of these facts, we are not in agreement with the conclusion reached by the CIT(A) that sundry balances written off were of capital in nature and could not be allowed. In our considered opinion all these advances/deposits are arising out of business exigencies of the assessee and have to be allowed whether or not routed through the profit and loss account. So far as sundry debtors are concerned, the same are allowable in the year of writing off. We are inclined to reverse the order of Ld. CIT(A) on this issue and allow the ground raised by the assessee. Disallowance on account of non payment of license fee under the provisions of section 43B - Held that:- After perusing the order of the authorities below, we find that facts are not coming out conspicuously as to the nature of the payment except that the assessee submitted before the authorities below that the said payment represented the non refundable deposit to be placed with the BMC for the multi storey building constructed by it. The matter requires a thorough examination and verification at the level of AO. Therefore, we restore it back to the file of AO with a direction to examine the same and decide afresh as per law and facts after affording a reasonable opportunity of being heard to the assessee. This ground is allowed for statistical purposes. Disallowance regarding society maintenance charges - Held that:- The said expenses are covered in the mutual settlement reached between the builder and the society. A.R. also filed a certificate before the Bench stating that society has provided some amount towards expenses as settlement amount for handing over to the society. The matter needs examination and verification at the level of AO as to whether the said expenses incurred by the assessee to the tune of ₹ 47,35,028/- is in fact borne by the assessee in terms of the various documents filed by the assessee during the year. Accordingly, we restore this issue to the file of AO with a direction to decide the same afresh, as per facts and law after affording a reasonable opportunity of being heard to the assessee. The ground raised is allowed for statistical purpose. Disallowance on account of legal expenses - Held that:- The material on record including the documents filed by the Ld. A.R. in the form of certificate from the assessee and minutes of proceedings of the society, we find that the issue is seized off between the society and the assessee as is apparent from the documents placed before us. Since these documents require verification and examination at the level of AO, we restore the issue back to the file of the AO with the direction to examine the same and decide the issue afresh as per law after affording the reasonable opportunity of hearing to the assessee. The ground is allowed for statistical purpose.
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