TMI Blog2018 (3) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,16,521 during the relevant assessment year. In view of the submission of both AR and DR, restore the issue to the A.O. - Decided in favour of assessee for statistical purposes. - ITA No. 104/Coch/2010 - - - Dated:- 8-3-2018 - Shri George George K, Judicial Member Appellant by : Smt. Vandana Menon, Advocate Respondent by : Sri. A. Dhanaraj, Sr. DR ORDER This appeal was restored to the Tribunal by the judgment of the Hon ble High Court dated 24.08.2017 in ITA No.88 of 2012. 2. Brief facts of the case are as follow:- 2.1 The assessee is a company engaged in trading of stocks and shares. For the assessment year 2006-2007 the assessee had claimed an amount of ₹ 1,16,521 as prior period expenses in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le for them to give customer-wise details of the DP charges since the depositories i.e. NSDL / CDSL had not given break-up to the principal broker. It was submitted before the first appellate authority that in the absence of the customer-wise break-up, the assessee could not recover the amount from the customers. Therefore, the amount was written off as an expenditure during the previous year 2005-2006. It was submitted before the first appellate authority that the expenditure has to be allowed as a revenue expenditure for the assessment year 2006-2007 on two grounds, viz. :- (a) The assessee was under the honest belief that he could recover these DP charges from the customers. The fact that the individual customer wise break up cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides other deductions and in terms of this provision, deductions provided for in the Section shall be allowed in respect of the matters dealt with therein in computing the income referred to in Section 28, and Clause-(vii) of Section 36(1) provides that, subject to the provisions of sub-section (2), the amount of any bad debt or part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year shall be allowed as a deduction in computing the income referred to in Section 28. However, Clause-(i) of sub-section (2) provides that, in making any deduction for bad debt or part thereof, no such deduction shall be allowed unless such debt or part thereof has been taken into account in computing the income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Departmental Representative present did not have any objection with regard to restoring of the case to the A.O. 7. I have heard the rival submissions and perused the relevant material on record. For an amount to be claimed as deduction u/s 36(1)(vii), the same should be written off as irrecoverable in the accounts of the assessee for the previous year. Further condition for allowance of the claim u/s 36(1)(vii) is mentioned in Section 36(2) of the I.T.Act. The Hon ble High Court had restored to the issue for the reason that no inquiry was made by the Tribunal in this regard. Both the parties have agreed that it would suffice, if the matter is restored to the A.O. for examination whether there is actual write off of amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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