TMI Blog2018 (1) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... ices had been duly offered to tax in the earlier years in accordance with Section 36(2) of the Act. Respectfully following the decision of the Hon’ble Supreme Court in the case of TRF Limited (2010 (2) TMI 211 - SUPREME COURT) and in view of the fact that the assessee had duly written off this trade debts by crediting the concerned sundry debtors accounts in its books of accounts, we direct the Ld. AO to delete the disallowance made towards bad debts. Addition made on account of sundry creditors - Held that:- This is a case wherein the other party M/s Anvil Cables Pvt. Ltd. having made sales to the assessee and having sent all the requisite documents through bank pursuant to L/C limits, had not recorded the sales in its books of accounts. Instead of passing on of this information to the Ld. AO of the supplier M/s Anvil Cables Pvt. Ltd for necessary action to be taken in accordance to law in the hands of the said supplier, the Ld.AO of the assessee had accepted the statement of account of that supplier as sacrosanct and proceeded to make addition in the hands of the assessee by disbelieving the reconciliation statement and explanation given by the assessee. Hence, in these circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in payments for which tax has been duly deducted and remitted by the assessee to the tune of ₹ 7,45,200/-. The assessee submitted a statement showing party wise details together with its requisite TDS remittance, which was duly appreciated by the Ld. CIT(A) and relief Indo Nabin Projects Ltd (Formerly Indo Power ProjectsLtd) was granted to the tune of ₹ 7,45,200/- by the Ld. CIT(A). The assessee further submitted that in respect of balance sum of ₹ 11,86,890/- the assessee had indeed deducted tax at source but the same is not in accordance with relevant provisions of Chapter XVIIB and accordingly the same would only fall under short deduction of tax at source. The assessee further pleaded that in respect of short deduction of tax at source the provisions of section 40a(ia) of the Act cannot be invoked in view of the decision of the Hon ble Jurisdictional High Court in the case of CIT vs. S.K. Tekriwal in ITAT No. 183 of 2012 G.A. No. 2069 of 2012 dated 03.12.2012. The Ld. CIT(A) however did not heed to this contention of the assessee and sustained the disallowance to the tune of ₹ 11,86,890/- u/s 40a(ia) of the Act. Aggrieved the assessee is in appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total ₹ 8,86,029/- This action of the ld. AO was upheld by the Ld. CIT(A) for the same reason. Aggrieved the assessee is in appeal before us on the following grounds: 2. Disallowance of ₹ 8,86,029/- on account of Bad Debt. On the facts and circumstances of the case and in law, the Ld. CIT(Appeals)-4, Kolkata was wrong in confirming the disallowance of the claim of Bad Debt amounting to ₹ 8,86,029.00 on the ground of non-furnishing of any detail and also non-substantiation of the claim inspite of production of necessary documents showing the irrecoverable debt. It is therefore, prayed that the Ld. Bench may kindly allow the claim of Bad Debt and set aside the order the Ld. CIT(Appeals)-4. 7. We have heard the rival submissions. We find from the details submitted by the assessee before the lower authorities in respect of each of the parties as under: (i) Andrew Yule Co. Ltd. ₹ 6,66,862/- is outstanding from 01.04.2004. This party is sundry debtor for the assessee. Indo Nabin Projects Ltd (Formerly Indo Power ProjectsLtd) (ii) Areva T D Ltd.- ₹ 2,10,250/- is outstandin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vis- -vis the balance sheet of the assessee in its books. The assessee in response to the show cause given by the Ld. AO furnished reconciliation as under: Closing amount as per party ledger - ₹ 28,90,864/- Add: Bill No. 76 raised by party but not considered in its account - ₹ 17,71,820/- Closing amount as per assessee s ledger - ₹ 46,62,684/- The assessee also replied that the entire purchase documents in this regard were routed through bank in respect of letter of credit facilities (L/C facility) availed by the party. Since, the documents had been received through banks by the assessee, the assessee proceeded to book the purchases for ₹ 17,71,820/- on 30.03.2010 relevant to assessment year 2010-11 and credited the parties account to that extent. The assessee further pleaded that since these materials were not actually received by the assessee, the assessee had duly reversed these purchases during the financial year 2010-11 relevant to assessment year 2011-12 by passing journal entry in its books on 31.03.2011. This journal entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ands of the said supplier, the Ld.AO of the assessee had accepted the statement of account of that supplier as sacrosanct and proceeded to make addition in the hands of the assessee by disbelieving the reconciliation statement and explanation given by the assessee. Hence, in these circumstances, we have no hesitation in directing the Ld. AO to delete the addition made on account of sundry creditors in the sum of ₹ 17,71,820/- in the facts of the case. Accordingly, ground no. 3 raised by the assessee is allowed. 11. The last ground to be decided in this appeal is with regard to non-granting of rebate of tax paid u/s 90/91 of the Act to the tune of ₹ 12,90,662/-. The assessee claimed rebate in respect of taxes paid in full u/s 90/91 of the Act to the tune of ₹ 48,43,541/-. Indo Nabin Projects Ltd (Formerly Indo Power ProjectsLtd) The Ld. AO granted rebate only to the extent of ₹ 35,52,919/- in the assessment and did not give credit for the remaining sum of ₹ 12,90,622/- in the assessment. The assessee had raised a specific ground in this regard vide ground no. 5 before the Ld. CIT(A) and had also filed submissions before him. The Ld. CIT(A) had not ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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