9911796707
TMI Blog2014 (11) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER B. Ramakotaiah, A.M. This is Revenue appeal against the order of Ld. CIT(A)-III, Hyderabad dated 3rd March, 2014 on the issue of allowing the bad debts claimed/advances written off of Rs. 30,29,932. 2. Briefly stated, assessee is a company engaged in the business of construction activity. It filed its return of income for A.Y. 2009-10 declaring total income of Rs. 32,18,76,958. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous persons. A look at the advances shows that some of them are very petty and are paid to labourers, drivers etcetera. These have also been carried forward in the books of account for many years. The appellant cannot be expected to bring documentary evidence from these persons after so many years regarding their non-return. Moreover, there is no evidence with the A.O. to prove that the advances i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot doubted the genuineness of the entries. Therefore, there is no reason to hold that the bad debts written off are not allowable. I am fortified in my view by the decision of the honourable jurisdictional High Court in the case of CIT vs. Sirpur Paper Mills Ltd. 334 ITR 656. Further, in the case of CIT_II vs. Inventa Chemicals, ITA 186 of 2013, the Hon'ble AP High Court has also supported the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not justified why the amounts are written off. Ld. CIT(A) examined the details and found that most of them are advances in the course of business paid over to more than 200 people and since the amounts are written off in the books of accounts they are eligible for deduction. Both on facts as well as on law, order of CIT(A) is to be upheld. There is no merit in Revenue grounds. Accordingly, the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
