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2016 (9) TMI 1076 - AT - Income TaxDisallowance of bad debts - applicability of condition laid down u/s 36(2) - Held that:- We are of the considered view that the only condition which required to be fulfilled by the assessee for claiming relief u/s 36(1)(VII) is to demonstrate that the amount claimed as bad debt should have been considered in the income of assessee of the year under consideration or in any earlier year. Ld. CIT(A) has pointed out that during assessment proceedings the assessee was not able to explain as to in which year the said amount claimed as bad debt was considered as the income of assessee. The said fact was however verified by CIT(A) by asking the assessee to furnish said details but the assessee could not furnish any such details even before CIT(A). Therefore, considering this factual position ld. CIT(A) has rightly come to the conclusion that the condition laid down u/s 36(2) of the I.T. Act has not been fulfilled. Therefore, the assessee claim of bad debts was rightly disallowed by CIT(A).Even before us no new circumstance have been brought on record in order to controvert or rebut the findings recorded by the learned CIT (A). Moreover, there is no reason for us to deviate from the findings recorded by the learned CIT (A). Therefore, we are of the considered view that the findings recorded by the learned CIT (A) are judicious and are well reasoned. Accordingly, we uphold the same.- Decided against assessee. Unexplained cash credit u/s 68 - Held that:- As in this respect no such explanation was furnished before AO even after availing several opportunities. We have also noticed that copy of letter dated 19/11/2009 relied upon by the assessee was also not filed during appellate proceedings and even before us no application for leading additional evidences has been moved. Therefore, the assessee’s claim had remained unsubstantiated that it had filed ledger accounts of the parties before the AO in support of its claim of reconciliation. From the facts and circumstances of the present case and after going through the impugned orders passed by CIT(A), we are of the considered view that since the assessee had failed to furnish explanation and reconciliation in respect of fresh credits appearing in its books of accounts and the assessee has also failed to discharge the onus of proving creditworthiness of the parties by not filing the confirmations of the parties. Therefore, ld. CIT(A) has rightly dismissed this ground of appeal.- Decided against assessee.
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