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2014 (7) TMI 513 - ITAT DELHIClaim of bad debts discount - settlement of invoice value - AO disallowed the same as shame transaction – Held that:- CIT(A) rightly of the view that a sum of ₹ 10,83,639/- debited to the P & L account was actually a bad debt which has arisen in the course of business transaction and it is to be allowed as a deduction - assessee had made sale of valves to Mawana Sugar Mill group of concerns by three sales invoices during the financial year relevant to A.Y. 2007-08 - The assessee had filed the contract entered by it with Mawana group before the AO - assessee had also filed before the AO the account copies of both the assessee and Mawana group, wherein, the details of sales of valves during the AY 2007-08 and the amounts outstanding from Mawana group as on 31.3.2008 are clearly depicted - revenue has not disputed the one time settlement entered between the assessee and Mawana group of concern as a sham agreement - the write off of ₹ 10,83,639/- has arisen in the course of assessee’s business transaction and necessarily, it is to be allowed as bad debt or business loss - the CIT(A) order is correct and in accordance with law and there was no infirmity in the order – Decided against Revenue.
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