Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Sterling Holiday Resorts India Ltd. Versus Assistant Commissioner of Income Tax

2015 (10) TMI 13 - ITAT CHENNAI

Disallowance under section 36(1)(vii) - provision of doubtful advance - Held that:- Assessee in fact had disallowed both the provision for doubtful debts of ₹ 31,12,318/- and provision for doubtful advances of ₹ 38,54,270/- while computing income for the assessment year 2006-07. Thus, we direct the Assessing Officer to delete the disallowance made in respect of provision for doubtful advance of ₹ 38,54,270/- as the assessee itself had disallowed the amount in its computation. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

file of the Assessing Officer with a direction to carry out the observations/directions of the Commissioner of Income Tax (Appeals) and ascertain as to whether business loss of the assessment year 1998-99 is carried forward only upto 2006-07 and not beyond that period. - Appeal of assessee allowed partly for statistical purposes. - ITA No. 2369/Mds/2014 - Dated:- 24-7-2015 - Chandra Poojari, AM And Challa Nagendra Prasad, JM, JJ. For the Appellant : Mr R Viswanathan, CA For the Respondent : Mr K .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s that disallowance which was made by the Assessing Officer towards provision for doubtful advance of ₹ 38,54,270/- has already been added back by the assessee in its computation of income filed for the assessment year under consideration. He invited our attention to page 5 of the paper book which is computation filed for the assessment year 2006-07 and submits that assessee has disallowed ₹ 69,66,588/- under section 36(1)(vii) of the Act. Further referring to page 6 of the paper boo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Tribunal for the reasons not known. He submits that Tribunal therefore had no occasion to adjudicate on the disallowance of provision for doubtful debts. The issue in question in the present appeal is disallowance for provision for doubtful advance of ₹ 38,54,270/- and since doubtful advance of ₹ 38,54,270/- which was already included in ₹ 69,66,588/- and was disallowed by the assessee in its computation of income, there is no justification at all in disallowing the said am .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nal in not considering the plea of the assessee that provision for doubtful advance of ₹ 38,54,270/- was already considered by the assessee itself in the return of income, appears to be not proper. The Assessing Officer while completing the assessment under section 143(3) read with section 147 of the Act disallowed provision for doubtful advance of ₹ 38,54,270/- rejecting the contention of the assessee that this amount has already included in ₹ 69,66,588/- which was disallowed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o ₹ 38,54,270/- is part of ₹ 69,66,588/- and therefore made disallowance. The Commissioner of Income Tax (Appeals) also sustained the disallowance observing that the Tribunal dismissed the appeal of the assessee on a similar addition in respect of provision for doubtful debts which was part of claim of ₹ 69,66,588/-, as the assessee did not press for adjudication of that ground . 6. We have perused the computation of income and the schedule at page 6 of the paper book with rega .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the appeal of the assessee is with regard to disallowance of carry forward business loss. Counsel for the assessee referring to page 5 of the order of Commissioner of Income Tax (Appeals) submits that Commissioner of Income Tax (Appeals) directed the Assessing Officer to verify the claim of the assessee that business loss for the assessment year 1998-99 can be carried forward upto assessment year 2006-07 and not beyond that period. However, while giving such direction the Commissioner of Income .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essment year 2007-08. 9. Departmental Representative has no serious objection in giving similar direction to the Assessing Officer. 10. Heard both sides. Perused orders of lower authorities. Commissioner of Income Tax (Appeals) with regard to the claim of the assessee in respect of carry forward business loss for the assessment year 1998-99 held as under:- "6.2 Disallowance of carry forward business loss - A.Y. 1998-99 of ₹ 23,47,88,896/- The second ground filed by the appellant is ag .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es of current year has been carried forward for set off to an extent of ₹ 23147188,896/-. As per the provisions of See 72, the brought forward of a particular AY cannot be carried forward beyond eight successive AYs. In this easel the business toss of AY 1998-99 can be carried forward up to AY 2006-07 only and not beyond that. Hence, the business loss carried forward by the assessee relating to AY 1998-99 has to be disallowed for carry forward. When this was pointed out to the assessee' .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version