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TMI Blog2012 (10) TMI 780X X X X Extracts X X X X X X X X Extracts X X X X ..... 740 and Rs.71,876 which were added by the Assessing Officer by making a disallowance out of repair and maintenance of building and maintenance other than building respectively. 2. The brief facts of the case are that assessee company at the relevant time was engaged in the business of express cargo handling by express, air, train and road business. It has filed its return of income on 3rd April 2009 declaring total income of Rs.113,40,770. The case of the assessee was selected for scrutiny assessment and a notice under sec. 143(2) of the Income-tax Act, 1961 was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the Assessing Officer that assessee has debited an amount of Rs.3,73,547 and Rs.3,13,041 under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07 pertaining to Rajdhani Timber Trading Co. for purchase of plywood has not been claimed by the assessee. It has been transferred to furniture and fixture account. Learned Assessing Officer has included the amount of Rs.25,500 in the total amount disallowed by him under this head at Rs.71,876. learned first appellate authority has gone through the details and satisfied that these expenses were not claimed by the assessee. Learned first appellate authority also satisfied that the expenses are of revenue in nature and no disallowance deserves to be made. Accordingly, Learned CIT(Appeals) has deleted the disallowance. 4. With the assistance of learned representative, we have gone through the record carefully. From perusal of details of the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s written off. Learned Assessing Officer confronted the assessee that these amounts do not fall within the purview of bad debts as envisaged under sec. 36(1)(vii) of the Act. In response to the query of the Assessing Officer, it was contended by the assessee that branch office was closed by the assessee. The landlord has adjusted the security deposit towards outstanding rent, water and electricity charges. Hence, it is an allowable deduction. Similarly, with regard to the advance given to local lorry vendor, it was contended that the advance was made for transportation of goods. However, assessee could not recover the amount. The assessee contended that these expenses were incurred in the ordinary course of business and if a loss though not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty and water charges. All these items are of revenue nature. Had the security was not adjusted then equal amount would have been paid by the assessee and it could get refund of security. The situation will remain the same. As far as the advance given to the lorry vendor is concerned, the assessee has submitted the details before the Assessing Officer and the Assessing Officer did not investigate the issue with the angle whether it is a revenue expenditure or not. He simply disallowed because in his understanding, it cannot be termed as a bad debts within the ambit of sec. 36(1)(vii) of the Act. On the other hand, learned first appellate authority has considered all other details and thereafter deleted the disallowance. After taking into con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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