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2020 (3) TMI 213 - AT - Income TaxDeduction on account of provision for bad and doubtful debts u/s 36 (1) (vii) - HELD THAT:- Respectfully following the decision of the Tribunal in Assessee's own case [2020 (1) TMI 995 - ITAT BANGALORE] we hold that the AO was justified in disallowing the claim for deduction on account of provisions for bad and doubtful debts u/s.36(1)(viia) of the Act as admittedly the Assessee did not debit its profit and loss account any sum towards provision for bad and doubtful debts. We therefore restore the order of the AO - Decided against assessee Depreciation on investments held to maturity as stock in trade - HELD THAT:- As decided in THE KARNATAKA BANK LTD VERSUS ASSISTANT COMMISSIONER OF INCOME TAX MANGALORE [2013 (7) TMI 656 - KARNATAKA HIGH COURT] order passed by the authorities balding that in view of the RBI guidelines, the assessee is stopped from treating the investment as stock-in-trade is not correct That finding recorded by the authorities is hereby set aside. Disallowance stale drafts and pay orders u/s 41 (1) - assessee purchased these and had not claimed/encashed them - AO was of the opinion that the said amount which remained unclaimed in the hands of assessee was profit chargeable to tax under section 41 (1) - HELD THAT:- As decided in own case the amounts represented credit balances in the name of the trading parties and was taken to its P & L a/c. The CIT(A) held that these amounts were not revenue receipts but were of capital nature. The provisions of s. 41(1) were not attracted in the facts of this case because he assessee’s liability to pay back the amounts to its customers had not ceased. Ground raised by revenue stands dismissed. Disallowance of interest expenses u/s.40(a)(ia) - HELD THAT:- As DR submitted that, for assessment year 2007-08, there is no finding of Ld.AO regarding collection of form 15 G/H by assessee. We therefore, direct assessee to submit evidences of form 15 G/H having collected before Ld. AO. AO shall grant relief to assessee as directed by this Tribunal in the subsequent assessment years reproduced hereinabove. Accordingly, these grounds raised by assessee stands allowed as indicated hereinabove.
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