TMI Blog2010 (10) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... o.2. Same are dismissed as not pressed. 3. We have heard the learned representatives of both the parties and perused the findings of the authorities below. The learned Counsel for the assessee at the outset submitted that the issues are same as have been considered by ITAT Ahmedabad in the case of the same assessee in ITA No.1091/Ahd/2005 and ITA No.4329/Ahd/2007 for assessment years 2001-02 and 2004-05. He has also submitted that in the same order the departmental appeal in ITA No.3451/Ahd/2007 and ITA No.4258/Ahd/2007 are decided vide order dated 12-03-2010. Copy of the order is placed on record and submitted that most of the issues are covered by the above order of the Tribunal dated 12-03-2010 in the case of the same assessee. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad hoc disallowances are arbitrary. The learned CIT(A) asked the assessee to analyze the total expenses claimed with reference to the preceding year and also increase in diesel prices. The assessee filed written submissions wherein it was explained that during the relevant financial year there were 680 trucks month as against 422 trucks for the preceding year and the income margin from the operation was 41.57% as against 48.39% in the preceding year. Thus, according to them the actual cost overrun the budgeted cost by about ₹ 2,00,000/-. The learned CIT(A) considering the facts and circumstances and the details and the disallowances made in the preceding assessment year restricted the disallowance to ₹ 10,00,000/- as against &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the purpose of business. The facts are identical as are considered in the other years referred above in which the Tribunal dismissed the cross appeals. The learned CIT(A) on over all appreciation of the facts and material on record and considering the similar disallowances made in the preceding assessment year rightly restricted the disallowance to ₹ 10,00,000/-. In the result, we do not find any justification to interfere with the order of the learned CIT(A). We confirm his findings by following the order of the Tribunal dated 12-03-2010 (supra) and dismiss the appeal of the assessee as well as departmental ground on this issue. 8. In the result, the appeal of the assessee on ground No.1 (ii) and (iii) and the departmental a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance was purely notional disallowance and that there was no nexus between the borrowed funds and advances and in the preceding assessment year similar disallowance was deleted by the learned CIT(A). The learned CIT(A) considering the disallowance of the preceding assessment year noted that in fact the outstanding balance has come down from ₹ 79,28,000/- to ₹ 49,57,000/-. He, therefore agreed with the order of his predecessor that no disallowance could be made. The advances were also not found for non-business purpose. The addition was accordingly deleted. The learned Counsel for the assessee at the outset submitted that the Tribunal dismissed the departmental appeal on the similar issue vide order dated 12-03-2010 in Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee submitted that similar ground was also considered by ITAT Ahmedabad Bench in the case of the same assessee vide order dated 12-03-2010 (supra) and by following the recent decision of the Hon'ble Supreme Court in the case of T. R. F. Ltd. Vs CIT 323 ITR 397 dismissed the departmental appeal. The findings are recorded in Para 31 to 34.2. The learned DR stated that the issue is now covered by the judgment of the Hon'ble Supreme Court in the case of T. R. F. Ltd. (supra) in which it was held as under: This position in law is well-settled. After 1st April, 1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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