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2015 (12) TMI 294 - AT - Income TaxDisallowance of bad debts written off - Held that:- The transactions involved were true and genuine. They had also held that the advances had been made during the course of the business and they had become irrecoverable as bad debts and hence the assessee was entitled to the benefit under section 36(1). The question as to whether a debt had become bad or not was a pure question of fact and, therefore, it could not be construed as a question of Law. - Decided in favour of assessee. Disallowance of commission paid u/s. 40(a)(ia) - CIT(A) deleted addition - Held that:- AO had an opportunity in the remand proceedings to verify the entire veracity of the claim made by the assessee in the additional ground before the Learned CITA with regard to allowability of deduction of commission to the extent of ₹ 46,56,333/- . We find that the assessee had duly remitted the TDS on 8.9.2009 which is before the due date of filing the return of income u/s 139(1) of the Act and accordingly is entitled for deduction for the same in the previous year itself. No adverse remarks were rendered by the Learned AO in this regard in the remand report. Hence it has to be presumed that the Learned AO had accepted the same in the remand proceedings. Having done so, we hold that the revenue ought not to have come on appeal before us on the alleged ground of violation of Rule 46A of the Income Tax Rules - Decided in favour of assessee. Applicability of provisions of section 40(a)(ia) read with section 194C - Held that:- Learned CIT(A) appreciated the fact that the assessee’s case falls only under contract for sale and not contract for work and relied on the CBDT Circular No. 13/6 dated 13.12.2006 wherein it was categorically stated that the provisions of section 194C would not apply to contracts for sale of goods and further clarifies that where the property in the article or thing so fabricated passes from the fabricator contractor to the assessee only after such article or thing is delivered to the assessee, such contract would be a contract for sale and so outside the purview of section 194C - Decided in favour of assessee.
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