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TMI Blog2015 (6) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has claimed bad debts of Rs. 29,44,060/- which represents small balances with various parties and deposits with Government department and in the absence of any evidence and correspondence regarding legal action etc., the AO disallowed Rs. 4,74,404/-. 4. Before the CIT(A), the assessee contended that the amounts were advances given for purchase of materials or services. It was submitted that the advances were given for business of the assessee. It was also submitted that none of the advances were made for purchase of fixed assets, and therefore, the same was allowable under section 28 as business loss. 5. The CIT(A) after considering the submissions of the assessee held that the amounts claimed as bad debts were not trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not on the capital field, and in the absence of any material to show that the amount was not bad, such amount is allowable as business loss to the assessee in the year in which the same was actually written off by the assessee as irrecoverable in its books of accounts. 8. However, in the instant case, it is observed that the AO stated that the amount of Rs. 4,74,404/- consisted of advances given to various parties as well as deposits with the Government departments. Party-wise bifurcation is not available on record. In the absence of the same, it is not clear whether there was any deposit in the capital field. In our considered view, advances which were on revenue field, is allowable as revenue loss, whereas the deposits which were on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es-tax. The company requested the Department to consider the financial position of the company, and allow payments in instalments. The Sales-tax Department allowed the plea of the assessee to pay the arrears in instalments. It was submitted that no civil or criminal proceedings were initiated against the assessee. It was, therefore, prayed that the amount did not represent any payment for infringement of law, and the same was allowable as deduction to the assessee. 13. The CIT(A) after considering the submissions of the assessee held that the levy of sales-tax penalty was on account of infringement of sales-tax provisions and it amounts to offence, and therefore, was not allowable deduction, and confirmed the action of the AO. 14. Before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed and the ground of the appeal of the assessee is dismissed. 17. The grounds no.3 and 4 of the appeal are directed against the order of the CIT(A) in making disallowance of Rs. 1,80,293/- out of total export promotion expenses and disallowance of Rs. 11,208/- out of total sales promotion expenses on the ground that it is not incurred for the purpose of business of the assessee. 18. We have considered rival submissions and perused the orders of the lower authorities and material available on record. 19. Brief facts of the case are that the AO made disallowance of Rs. 1,80,293/- out of export promotion expense on the ground that the assessee, even when asked to furnish specific details of expenses relating to visit of Shri K.K. Vit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has increased, no specific error in the order of the CIT(A) could be pointed out by the AR. The purpose of visit and the business connection of the above expenditure could not be established by the assessee by producing relevant material. In the absence of the same, we do not find any good reason to interfere with the order of the CIT(A), which is confirmed. The ground of the appeal of the assessee is dismissed. 24. The ground no.5 of the appeal is directed against the order of the CIT(A) in confirming the action of the AO in making disallowance of Rs. 2,19,673/- on account of repairing expenses. 25. We have heard rival submissions and perused the orders of the lower authorities and material available on record. 26. Brief facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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