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2015 (6) TMI 486 - ITAT MUMBAI

2015 (6) TMI 486 - ITAT MUMBAI - TMI - Disallowance of club expenditure - subscription / membership fees - Held that:- Perusing the order of the Tribunal in one of the assessment years 2005–06 of assessee's own case wherein the issue is covered in favour of the assessee by the decision of Otis Elevators Co. Ltd. (1991 (4) TMI 53 - BOMBAY High Court) which has been followed by the Tribunal in assessee’s own case for the earlier assessment years. - Decided in favour of the assessee.

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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 of ₹ 12,99,690, the Assessing Officer did not provide the necessary details to enable the assessee to reconcile the same. It is a se .....

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n nature. The Assessing Officer is required to first examine the specific of the transaction that require reconciliation - Decided in favour of assessee for statistical purposes. - ITA no.7723/Mum./2010, ITA no.1666/Mum./2012 - Dated:- 22-5-2015 - SHRI D. KARUNAKARA RAO AND SHRI VIJAY PAL RAO, JJ. For the Appellant : Shri Milin Thakore For the Respondent: Shri N.V. Nadkarni ORDER PER D. KARUNAKARA RAO, A.M. The present appeals preferred by the assessee are directed against the two separate impug .....

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-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 cl .....

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t to CENVAT. 4. The learned Counsel for the assessee submitted before us that he did not wish to press this ground. The learned Departmental Representative has not made any objection to the submissions of the learned Counsel. Consequently, this ground is dismissed as not pressed . 5. Ground no.2, relates to disallowance of club expenditure amounting to ₹ 4,34,062. 6. Before us, the learned Counsel for the assessee brought to our notice the order of the Tribunal passed in assessee s own cas .....

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of 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 re .....

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R 397 (SC), and many others. Further, he also mentioned that the bad and doubtful debts were ultimately written off in the Profit & Loss account as per the method of accounting consistently followed over the years. The learned Counsel supported the above statement by following written submissions. The appellant creates provision for bad and doubtful debts which is disallowed in computation of income. Refer computation of income for A Ys 2003-04, 2004-05, 2005-06 and 2006-07. The appellant ha .....

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, 2005-06 and 2006-07. Provision created earlier is disallowed and therefore claim of bad debts does not result in double deduction. In case the appellant had written 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 prof .....

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ly relied on the orders of the Revenue authorities. 12. We have heard both the parties and perused the material available on record. We have noticed that there is a need for examining 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. (supra) was delivered subsequent time and the same was not available before the Revenue authorities at the relevant .....

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We shall now take up assessee s appeal in ITA no.1666/Mum./ 2012, for the assessment year 2007-08. Ground raised by the assessee are as under:- 1. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in confirming disallowance of ₹ 16,11,913 being subscription / membership fees paid to the clubs. 2. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in confirming disallowance of ₹ 1,52,26,284 in respect of debts writ .....

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ditated and allowed the said ground in favour of the assessee. Since this ground is common to the ground no.2, raised by the assessee in the assessment year 2006-07, therefore, for the reasons stated therein vide Para-6 and 7 above, we set aside the impugned order passed by the learned Commissioner (Appeals) on this issue and allow the ground raised by the assessee. 15. Ground no.2, relates to the issue of bad and doubtful debts written-off amounting to ₹ 1,52,26,284. 16. After hearing bot .....

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