TMI Blog2013 (12) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... ing been credited to the profit and loss account of the assessee, it is evident that a part of the debt is taken into account in computing the income of the assessee - Since both form a component part of the debt, the requirements of Section 36(2)(i) are fulfilled where a part thereof is taken into account in computing the income of the assessee - The deduction should be allowed only to the extent of the debts as reduced by the value of shares in the hands of the assessee - Decided in favor of the assessee. Deduction on account of repairs and maintenance charges of computers – Held that:- the amount paid is capital in nature – The depreciation at the rate of 30% is allowed on the amount - The remaining amount will be allowed as depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... summons / notice u/s 133(6) in order to verify the correctness of credit entries. At the same time the assessee submitted copy of account of Deepak Corporation in the books of the assessee duly confirmed by the party. The Assessing Officer issued summons to Shri Kailash Kabra, proprietor of both the above referred concerns. The A.O. also obtained information from the bankers of these concerns and obtained their copy of accounts. It further transpired that the assessee had certain squared up transactions with these two concerns and further there was one more concern, namely, M/s.Antima Corporation, again a proprietorship concern of Shri Kailash Kabra. Since Shri Kabra could not be produced before the Assessing Officer and there was no confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) that the contents of the statement of Shri Kabra recorded by the Assessing Officer were incorrect and the assessee should be allowed cross-examination. Not convinced with the assessee's submission, the learned CIT(A) upheld the addition. 3. After considering the rival submissions and perusing the relevant material on record, it is observed from the statement of Shri Kailash Kabra that he admitted to have only one concern, namely, M/s.Deepak Corporation. In response to question no.6, he stated that he was funding the assessee through his concern Deepak Corporation. The Assessing Officer vide his question no.8 asked Shri Kailash Kabra that if he was having only one concern, then how the confirmations in respect of M/s.Ruchita Enterpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The correctness of these three accounts in the books of assessee has not been disputed by the learned Departmental Representative. It is further worth noting that the peak credit from these three accounts comes at Rs.18 lakh, which is the amount added by the A.O. u/s 68 of the Act. These facts ex facie bring to light that the assessee's transactions with these three concerns of Shri Kabra are limited to those recorded on such pages. It needs to be ascertained as to whether the statement of Shri Kabra about the accounts of Ruchita Enterprises and Antima Corporation maintained by him for and on behalf of the assessee is correct or not. The learned AR has placed on record copies of bank statements of respect of Ruchita Enterprises and Antim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent back to the AO for doing the needful in this regard as per our above directions and thereafter deciding the issue afresh as per law. 4. The second ground is against the confirmation of addition of bad debts. The assessee claimed deduction of Rs.4,84,269, being the amount of bad debts. This was not allowed by the authorities below on the ground that the assessee was a stock broker and hence the conditions of section 36(2) were fulfilled only to the extent of brokerage as shown as income in any previous year. 5. After considering the rival submissions and perusing the relevant material on record, we find that this issue is no more res integra in view of the judgment of the Hon'ble jurisdictional High Court in the case of CIT v. Shreya ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
