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TMI Blog2013 (12) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... ipur. During the course of running of those Industrial Units various kinds of deposits were given to various Government authorities for Food Licenses, Gas Cylinder, Electricity Deposit etc., which are required for running the business. There were some receivables from many customers on account of sale of goods to them. The company had in the past sold all these manufacturing units to various companies. However, the receivable deposits pertains to these units were still shown as recoverable/deposits. 3. During the course of assessment proceedings, the Assessing Officer found that the assessee had closed down and sold its business. Whereas, certain deposits on debtors remains outstanding which were written off in the year under consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue with sale of assets has also not been disclosed. Therefore, he held that the Assessing Officer was justified in rejecting the claim of the assessee. 4. Counsel of the assessee filed small written note. On the other hand, learned D.R. placed reliance on the Order of the CIT(A). 5. After considering the order of the Assessing Officer and CIT(A) and submissions of the assessee, I found that this matters needs re-verification. In the written submissions it has been explained that the amounts written off were not at all receivable and no deduction was claimed in earlier year or later year. The disallowance leads to total taxation as it was not claimed when the units were sold. Reliance is placed in the case of G.R.Pandya Share Broking Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts made to collect these amounts has been furnished. These, interest income were already offered to tax in earlier years and since the company had failed to recover these sums, it has been written off. However, learned CIT(A) was also not satisfied with the explanation of the assessee. The CIT(A) noted that assessee has filed loan confirmation from the parties who are the Directors of the assessee-company. Therefore, it is, difficult to imagine that assessee would have been seriously interested in recovering the loan and interest whereas, with a view to reduce the rental and interest income assessee has claimed such expenses without giving any other details. Accordingly, he confirmed the action of the Assessing Officer. 8. After consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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