TMI Blog2017 (7) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the Profit & Loss Account cannot be treated as a business loss and we are in complete agreement with the Ld. CIT (Appeals) in this regard.But in the interest of justice we consider it fair to grant the assessee another oppurtunity of proving its claim of incurring business loss by adducing evidences in this regard. - Decided in favour of assessee for statistical purposes. Addition u/s 36(1)(iii) - interest rate difference on advance without appreciating the fact that the advance was given to supplier in the ordinary course of business - Held that:- We find merit in the contention of Ld. counsel for the assessee. Undeniably, the own interest free funds of the assessee in the form of profits earned during the year being ₹ 2.02 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to one Vishal Retails Pvt. Ltd. as refundable security on 16.6.2008 to secure space in the various malls for retail sale of their products. The assessee further contended that due to financial problem of the company, it was requested for refund of the deposit but despite lot of efforts, no money was refunded. The assessee contended that due to non recovery of the security amount, the said amount has been written off as business expenses under section 37 of the Income Tax Act, 1961 (in short the Act ). The Assessing Officer was not satisfied with the contention of the assessee and, therefore, disallowed the aforestated amount adding the same to the income of the assessee. 5. The Ld. CIT (Appeals) upheld the disallowance since the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per the assessee, due to non recoverability of the said security deposit, a business loss had accrued to the assessee which it had claimed as such by writing off the security deposit in the Profit Loss Account. We find that other than claiming the same to be a business loss no evidence of any sort has been produced by the Ld. counsel for the assessee before us or even before the lower authorities to prove its above contention. In the absence of any such evidence, the write off of security deposit in the Profit Loss Account cannot be treated as a business loss and we are in complete agreement with the Ld. CIT (Appeals) in this regard.But in the interest of justice we consider it fair to grant the assessee another oppurtunity of proving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Abhishek Industries Limited (supra). 11. Before us, the Ld. counsel for the assessee contended that it had enough own interest free funds to make the aforoestated advances and, therefore, the disallowance made was unwarranted. The Ld. counsel for the assessee drew our attention to the profits earned by the assessee during the year amounting to ₹ 2,20,50,090/- and to the advances made to Sahaj Honey Bee Farms amounting to ₹ 60 lacs and 20 lacs as reflected in its Profit and Loss Account and Balance Sheet of the assessee for the year placed in the Paper Book. The Ld. counsel for the assessee stated that clearly its own funds were more than sufficient to make the aforestated advances and in view of the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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