TMI Blog2011 (3) TMI 1553X X X X Extracts X X X X X X X X Extracts X X X X ..... making following disallowances : 1. Sundry balances written off ₹ 60,54,678 (as discussed in para 5 above) 2. Bad debts written off ₹ 96,05,42,627 (as discussed in para 6 above) 3. The learned CIT(A) confirmed the disallowances. 4. Being aggrieved, the assessee is in appeal before us and has taken, inter alia, the following grounds of appeal : 2. The learned lower authorities have grossly erred in making/confirming an addition of ₹ 60,54,678 being the sundry b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) Geekay Securities Services Ltd. 2,00,000 It was further pointed out that the amounts of all above parties were merely brought forward balances since past 7-8 years. In the absence of any communication with the above parties since past several years and non-availability of old records, the addresses of said parties were not readily available. The AO inferred as under : (a) The addresses of the parties have not been submitted. (b) No concrete action has been taken for recovery. (c) No documents related to the said transactions have been submitted. (d) The genuineness of the transactions itself has not been substantiated. The AO referred to the provisions of s. 36(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calibur Investments 10,00,000 Excess provision of interest payable 20,71,865 A 2,97,58,862 Sundry debit balances written off C. Jayshree 4,75,000 Emcee Enterprises 9,12,953 Geekay Security Services 2,00,000 Interest receivable excess provided (Rs. 13,46,306 + ₹ 6,54,454) 20,00,000 Manav International 1,56,176 Raja Seth Finance Ltd. 10,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption under s. 10(2)(xv) was on the assessee but the necessary facts had not been established by the assessee at any stage of the proceedings and the High Court was in error in applying the principles of Mitchell's case on the assumption of facts which were of proved. Consequently the assessee was not entitled to the deduction claimed. In the present case, we find that the assessee has only advanced its claim but has not been able to substantiate its claim and, therefore, the same cannot be allowed. This ground is, thus, dismissed. 9. Brief facts, apropos ground No. 3 are that, during the year under consideration, the assessee company had written off bad debt amounting to ₹ 96,05,42,627. The AO required the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign currency. As the assessee failed to furnish these details, the AO concluded that the write off was not proper. (e) Further, he noticed that since the assessee failed to get the accounts audited, the AO concluded that the genuineness of the books of account prepared by the assessee was also in doubt. Accordingly, the AO disallowed assessee's claim. On appeal, the learned CIT(A) confirmed the AO's action. 10. Learned counsel for the assessee submitted before us that this issue is now covered by the judgment of the Hon'ble Supreme Court in T.R.F. Ltd. vs. CIT (2010) 230 CTR (SC) 14: (2010) 35 DTR (SC) 156: (2010) 323 ITR 397(SC). He further referred to the decision of the Tribunal in the case of Sashak Noble Meta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the decision of Hon'ble Supreme Court cited supra, the onus has only shifted to the AO to prove mala fide. 11. We have heard the rival submissions, perused the orders of the lower authorities and the materials available on record. Learned counsel for the assessee relied on the decision of Tribunal in Sashak Noble Metals Ltd. (supra). In this case, the assessee had submitted the details such as full address of the parties, resolution of the board regarding write off of foreign debtors, details of action taken for recovery, bill-wise details of debt written off along with the copy of relevant sale invoices, MoU and law suit filed on 11th April, 2002. In this case also, the board resolution was passed on 31st Oct., 2002, i.e., during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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