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2018 (7) TMI 742 - ITAT DELHIDisallowance on account of sundry balances written off u/s 36(l)(vii) - Held that:- Principle of holding the security deposits as expenditure in the capital field is concerned, we do not find any error in the order of the Ld. CIT(A). However, before us the Ld. counsel has submitted that part of the security deposits were adjusted toward pending rent and therefore, same would fall in the nature of business expenditure. We find that this issue has not been verified by the lower authorities and before coming at conclusion that the security deposits written off are not allowable as revenue expenditure, it is essential to examine the factual position, whether part of such security deposits were adjusted against outstanding rent. In view of the above facts and circumstances, we feel it appropriate to restore this issue to the file of the Ld. CIT(A) for verification of the claim of the assessee - Decided in favour of assessee for statistical purposes.
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