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TMI Blog2017 (9) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer erred in not allowing deduction of Rs. 4,00,000/- and CIT(A) erred in confirming the addition which be deleted. 2. On the facts and in the circumstances of the case, and in law the assessing officer erred in making addition of Rs. 25,29,605/- being the bad debts written of which be allowed in full and the learned CIT(A) erred in confirming the addition saying that, addition made cannot be allowed u/s.36(2)(i) of the Act. The appellant prays that, the addition made be deleted. 3. On the facts and in the circumstances of the case, the learned assessing officer erred in making addition of Rs. 20,98,735/- out of cash expenses which addition be deleted. Without prejudice, the addition made being on adhoc basis, it should be reduced. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss before Ld. CIT(A) vide impugned order dated 23/02/2015 where Ld. CIT(A), after considering assessee's submissions / contentions, concluded the matter in the following manner:- 5.1 I have carefully and dispassionately considered the facts and circumstances of the case, written submissions of the appellant and arguments made by the AR before the undersigned. Various grounds of appeal are decided as under:- 5.2 GROUND OF APPEAL NO.1: 5.2.1 Admittedly, the advances given to Mr. Akshay Kumar, Mr. Kabir Lal and Ms. Nisha Waghela were not in the nature of debts. Secondly, such debts or part thereof had not been taken into account in computing the income of the appellant for the previous year in which the amount of such debt or part ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng or money lending. Thirdly, the appellant has failed to prove that these bad debts were written off and taken into account in computing the income of the appellant for the previous year relevant to A.Y.2010-11 or for an earlier assessment year. Therefore, such bad debts of Rs. 25,29,605/- cannot be allowed u/s.36(2)(i) of the Act in the previous years relevant to A.Y.2010-11 5.3.2 Having regard to facts and circumstances of the case and in view of provisions of sec.36(2)(i) of the act, the disallowance of Rs. 25,29,605/- is confirmed. Therefore, ground of appeal no.2 is not allowed. 5.4 GROUND OF APPEAL NO.3: 5.4.1 During the course of assessment proceedings the A.O noticed that the appellant had incurred expense of Rs. 1,04,93,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Having regard to facts and circumstances of the case, the disallowance of unverified cash expenses of Rs. 20,98,735/-, being 20% of total cash expenses, is considered reasonable and therefore confirmed. Such cash expenses have not been incurred wholly and exclusively for the purpose of appellant's business. Therefore, ground of appeal no.3 is not allowed. The disallowance u/s 14A was confirmed by Ld.CIT(A) after placing reliance on several judicial pronouncements. Aggrieved, the assessee is in further appeal before us. 4.1 The Ld. Representative for assessee [AR] contested the addition of Rs. 4.00 Lacs against advances written-off by contending that the same were given in ordinary course of business and hence, the loss of the same const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, require rectification. 6. Proceeding further on the merits of the appeal, so far as the addition of Rs. 4.00 against write-off of advances is concerned, we are inclined to confirm the same since the assessee could not adduce any material to show that the advances were given in the ordinary course of assessee's business and the same constitute trading loss for the assessee. Per query from the bench, the assessee could not produce any agreement / documentary evidences to substantiate this fact and therefore, this addition is confirmed and this ground of assessee's appeal stands dismissed. 7. Regarding addition of Rs. 25,29,605/- on account of bad debts written-off, after perusal of ledger extract placed in the paper book, we concur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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