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2015 (6) TMI 486

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..... ning the statement of the assessee’s write–off on the Profit & Loss account for verification by the Assessing Officer. It is also noticed that the decision of the Tribunal in Arrow Coated Products Ltd. (2012 (6) TMI 445 - ITAT MUMBAI ) was delivered subsequent time and the same was not available before the Revenue authorities at the relevant point of time. We, accordingly, remand this issue to the file of the Assessing Officer for verification - Decided in favour of assessee for statistical purposes. Addition on alleged unreconciled transactions - Held that:- AIR data amounting to ₹ 65,93,498, the assessee successfully reconciled to the extent of ₹ 52,93,803 that constitute 80% of the entire transaction. Regarding the balance .....

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..... are being disposed of by way of this consolidated order. 2. We shall first proceed to dispose the assessee s appeal in ITA no.7723/Mum./2010, for the assessment year 2006 07. Following grounds have been raised by the assessee: 1. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in upholding addition to total income on account of adjustment for proportionate element of CENVAT under section 145A to the extent of ₹ 94,89,422. 2. On the facts and in the circumstances of the case and in law the learned CIT(A) has legally erred in confirming disallowance of ₹ 4,34,062 being subscription / membership fees paid to the clubs including ₹ 41,722 towards cost of clu .....

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..... the assessee by the decision of the Hon'ble Jurisdictional High Court in the case of Otis Elevators Co. Ltd. reported in 195 ITR 682 (Bom.) which has been followed by the Tribunal in assessee s own case for the earlier assessment years. Accordingly, respectfully following the earlier order of the Tribunal, we decide this issue in favour of the assessee and against the revenue. 7. Considering the above settled nature of the issue, we are of the opinion that the assessee s ground no.2 is required to be allowed. Accordingly, we set aside the impugned order on this issue and allow ground no.2 raised by the assessee. 8. Ground no.3, relates to disallowance of bad and doubtful debt written of amounting to ₹ 61,00,460. 9. Befor .....

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..... en off the bad debts by debiting it to profit and loss account, provision created for bad and doubtful debts created in earlier years will have to be reversed. The impact on profit and loss account and computation of total income in both cases is depicted in separate statement. It is evidence from the statement that the impact on profit and loss account and computation of income of any of the method followed (as per the appellant or that as per the CIT(A)) is same. 10. Finally, the assessee relied on the decision of the Tribunal, Mumbai Benches, rendered in Arrow Coated Products Ltd. v/s ACIT, 22 Taxman.com 31 (Mum.). He also furnished statement showing impact on Profit Loss account and computation of income on different methods of wr .....

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..... of the case and in law the learned CIT(A) erred in confirming disallowance of ₹ 1,52,26,284 in respect of debts written off as irrecoverable in the accounts of the appellant. 3. On the facts and in the circumstances of the case and in law in confirming an addition of ₹ 12,99,690 in respect of alleged unreconciled transactions. 14. After hearing both the parties, we find that ground no.1, relates to disallowance of club expenses of ₹ 16,11,913, which is common to ground no.2, of assessee s appeal in ITA no.7723/Mum./2010, which is relevant for the assessment year 2006 07, which we have already adjuditated and allowed the said ground in favour of the assessee. Since this ground is common to the ground no. .....

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..... on reconciliation of the AIR data and does not lead to sustainable addition in the assessment. In our opinion, there is a need for remanding this issue to the file of the Assessing Officer. Consequently, we set aside the impugned order passed by the learned CIT(A) on this issue and restore the issue back to his file with a direction to furnish requisite specific information to the assessee calling for reconciliation. Normally, the AIR data is generic as well as general in nature. The Assessing Officer is required to first examine the specific of the transaction that require reconciliation. Thus, ground no.3, is allowed for statistical purposes. 19. In the result, assessee s appeal for the A.Y. 2007 08 is partly allowed for statistical pu .....

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