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2006 (6) TMI 176 - AT - Income TaxDisallowance of amount of advance written off as irrecoverable - HELD THAT:- In the facts of the present case also, it is found that the assessee advanced money to secure a capital advantage. The expenditure was incurred towards the cost of acquiring the profit earning apparatus. On this factual matrix it cannot be said that the loss caused due to the non-recovery of advance was in the revenue field. It was in the capital field only. As such it cannot be allowed as a revenue loss. Since it was not a debt, it cannot be allowed as bad debt - the Commissioner (Appeals) took a correct view in the matter and his order calls for no interference on this count - the same is upheld. Allowability of PF and ESI contributions made at the end of the assessment year - HELD THAT:- The assessee raised this issue in the grounds taken before the Commissioner (Appeals). This issue was not adjudicated. In the interest of justice this issue restored to the file of the Commissioner (Appeals) with a direction to decide the same in accordance with law after providing adequate opportunity to the assessee of being heard. The appeal of the assessee stands partly allowed.
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