TMI Blog2015 (12) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... . Moreover, assessee through its Authorized Representative agreed to the disallowance of bad debt and addition of the same. The judgement of Hon’ble Apex Court in the case of TRF Limited vs. CIT(supra) relied upon by the assessee will not help to the assessee. Therefore, ground raised in the Assessee’s appeal is rejected. - Decided in favour of assessee. - I.T.A. No. 2520/Ahd/2011 - - - Dated:- 5-6-2015 - SHRI BEFORE SHRI G.D. AGARWAL,VICE PRESIDENT (AZ) And SHRI KUL BHARAT, JUDICIAL MEMBER For The Appellant : Shri Surendra Modiani, A.R. For The Respondent : Shri Dinesh Singh, Sr.DR ORDER PER SHRI KUL BHARAT, JUDICIAL MEMBER : This appeal by the Assessee is directed against the order of the Ld.Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly effective ground in this appeal is against disallowing the bad debts of ₹ 1,14,336/-. The ld.counsel for the assessee submitted that the authorities below were not justified in disallowing the bad debts and addition thereon. He submitted that the ld.CIT(A) ought to have deleted the disallowance. The ld.counsel for the assessee relied on the judgement of Hon ble Apex Court rendered in the case of TRF Limited vs. CIT reported at (2010) 323 ITR 397 (SC). 3.1. On the contrary, ld.Sr.DR supported the order of the AO and submitted that the AO has given a clear finding that the assessee in written submission stated that the firm has claimed bad debt as Bil Metal Industries Ltd. has not paid due amount during preceding years as a result ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount written off of ₹ 1,14,366/- in the case of Bil Metal Industries Ltd. Vide notice u/s 142(1) dated 20.11.2009, assessee was requested to justify how the claim of bad debt is allowable in the case of Bil Metal Industries specially when the business of Bil Metal is running during the year the business of the assessee was continued with the said company. In reply, the assessee filed written submission stating that the firm has claimed bad debt as Bil Metal Industries Ltd has not paid due amount during preceding years as a result of which the assessee has written off the due amount. On verification of ledger account of Bil Metal Industries for the F.Y.2006-07 relevant to A.Y.2007-08 from the books of account of the assessee it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . From the facts mentioned by the AO and documents submitted by the appellant during the course of proceedings before the undersigned it is very clear that the appellant was continuing business with Bil Metal Ind. Ltd during the previous year under consideration and it was regularly making sales to that party. It has also received payment of ₹ 40000/- on 24.03.2007. Problem, if any, was in relation to bills amounting to ₹ 114366/-, in respect of which the appellant has not submitted any documentary evidence of dispute. It is also very clear from the submission of the appellant that amount of ₹ 1,14,366/- is not recoverable because of some kind of dispute between the appellant and Bil Metal Ind. Ltd and not because the fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble Apex Court in the case of TRF Limited vs. CIT reported at (2010) 323 ITR 397 (SC) in support of his contention that the claim of the assessee with regard to bad debt is allowable. We do not see any force in the contention of the ld.counsel for the assessee as in the present case the AO has demonstrated that the assessee has continued business transactions with the concerned party. It is also not disputed that the assessee has received payments from the concerned party. Moreover, assessee through its Authorized Representative agreed to the disallowance of bad debt and addition of the same. The judgement of Hon ble Apex Court in the case of TRF Limited vs. CIT(supra) relied upon by the ld.counsel for the assessee will not help to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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