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M/s Vesta Building Products P. Ltd. Versus C.I.T. (A) -21, Mumbai

2016 (9) TMI 1076 - ITAT MUMBAI

Disallowance of bad debts - applicability of condition laid down u/s 36(2) - Held that:- We are of the considered view that the only condition which required to be fulfilled by the assessee for claiming relief u/s 36(1)(VII) is to demonstrate that the amount claimed as bad debt should have been considered in the income of assessee of the year under consideration or in any earlier year. Ld. CIT(A) has pointed out that during assessment proceedings the assessee was not able to explain as to in whi .....

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before us no new circumstance have been brought on record in order to controvert or rebut the findings recorded by the learned CIT (A). Moreover, there is no reason for us to deviate from the findings recorded by the learned CIT (A). Therefore, we are of the considered view that the findings recorded by the learned CIT (A) are judicious and are well reasoned. Accordingly, we uphold the same.- Decided against assessee. - Unexplained cash credit u/s 68 - Held that:- As in this respect no such .....

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the present case and after going through the impugned orders passed by CIT(A), we are of the considered view that since the assessee had failed to furnish explanation and reconciliation in respect of fresh credits appearing in its books of accounts and the assessee has also failed to discharge the onus of proving creditworthiness of the parties by not filing the confirmations of the parties. Therefore, ld. CIT(A) has rightly dismissed this ground of appeal.- Decided against assessee. - ITA No.55 .....

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rred in disallowing Bad debts of ₹ 4,00,872/- and further the CIT(A) erred in confirming the said disallowance of ₹ 4,00,872/-. 2. The learned AO further erred on the facts and circumstances of the case in making additions of ₹ 94,72,889/- as unexplained cash credit u/s 68 and the CIT(A) further erred in confirming the said addition on appeal. 3. The learned A.O. erred in disallowing ₹ 1,05,852/- out of salary paid being in excess over last year. 4. The learned AO further .....

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e and after receiving the reply filed by the assessee, the AO passed the order of assessment on 10.12.2009 u/s 143(3) of the I.T. Act,1961 thereby making disallowance on account of bad debts of ₹ 4,00,872/- and also made addition of ₹ 94,72,889/- as unexplained cash credits u/s 68 of the I.T. Act,1961. Aggrieved by the order of the AO, the assessee preferred appeal before the learned CIT (A) and the learned CIT (A) after considering the case and hearing both the parties has partly al .....

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the application and taking into account the principles laid down by Hon ble Supreme court in the case of Land Acquisition Collector vs. Mst Katiji AIR 1987 S.C. 1353. We Condon the delay and admit the appeal for decision on merits. At the outset of arguments the ld. AR submitted that he do not want to press ground no.3 &4 of the appeal therefore considering the facts that the assesee do not want to press the ground no.3 &4 therefore taking into consideration the submissions made by ld. A .....

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shown as income in arrears. ld. AR relied upon the judgements of Hon ble ITAT in the case of Ajith Kumar Kamdar vs. CIT (2005) SOT 183 (Mum) wherein it was said that it was not for the assessee to establish that the debt has become bad in the previous year. And lastly it was submitted that since the assessee had written off the debts as irrecoverable in the accounts for the previous year that itself is sufficient for claiming as bad debt. On the contrary, ld. DR appearing on behalf of revenue s .....

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36(1)(VII)if the condition laid down u/s 36(2) are satisfied. In view of decision of the courts on this issue, the appellant was not required to establish that the debt had actually become bad. The only condition now required to be fulfilled is that the amount claimed as bad debt should have been considered in the income of appellant of the year under consideration or in any earlier year. During assessment proceedings the appellant was not able to explain as to in which year the said amount clai .....

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the parties we are of the considered view that the only condition which required to be fulfilled by the assessee for claiming relief u/s 36(1)(VII) is to demonstrate that the amount claimed as bad debt should have been considered in the income of assessee of the year under consideration or in any earlier year. Ld. CIT(A) has pointed out that during assessment proceedings the assessee was not able to explain as to in which year the said amount claimed as bad debt was considered as the income of a .....

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vert or rebut the findings recorded by the learned CIT (A). Moreover, there is no reason for us to deviate from the findings recorded by the learned CIT (A). Therefore, we are of the considered view that the findings recoded by the learned CIT (A) are judicious and are well reasoned. Accordingly, we uphold the same. Resultantly, this ground raised by the Assessee stands dismissed. Ground No.2 6. The said ground relates to making addition of ₹ 94,72,889/- as unexplained cash credit u/s 68 o .....

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/- being loan taken by the assessee company. It was further submitted by ld. AR that an amount of ₹ 4,25,000/- and ₹ 20,74,889/- were being shown as loans received from Mr. Rahul Sankhe and Shirish Sankhe respectively. It was pointed out by ld. AR that the amount of ₹ 14,00,000/- received from Mr. Rahul Sankhe and ₹ 56,00,000/- received from Mr. Shirish Sankhe were reflected in the ledger account or Mrs. Rashmi Sankhe due to clerical error. The asessee had filed bank acco .....

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other hand learned Departmental Representative appearing on behalf of revenue relied upon the order passed by learned CIT(A). 7. We have heard the counsels for both the parties on this ground and we have also perused the material placed on record as well as the orders passed by the revenue authorities. We are of the considered view that the ld. CIT(A) has dealt with the said issue in para no.5.3 of its order and while dealing with the said issue. Ld. CIT(A) has categorically mentioned that even .....

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