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TMI Blog2020 (11) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.2020, neither the assessee nor its authorized representative appeared before the Tribunal on the above date. As there is non-compliance by the assessee, we are proceeding to dispose off this appeal, after examining the documents available on record and after hearing the Ld. Departmental Representative (DR). 2. The grounds of appeal filed by the assessee read as under : 1.1. The learned CIT (A) erred in disallowing a sum of Rs. 8,21,987/- merely on the basis that corresponding income has not been offered to tax in any earlier year. 1.2 The learned CIT(A) erred in not granting deduction under Section 28 of the Act and without considering the explanations of the Appellant. 1.3. The learned CIT (A) erred in not granting deduction und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/-. As per the profit and loss account, the assessee had claimed an amount of Rs. 8,21,997/- as bad debt written off under the head "Other Expenses". During the course of assessment proceedings, the assessee filed before the AO the following details : Write off of Investment in Jetpur Somnath Highways Ltd. on account of winding up Rs. 7,40,000/- Irrecoverable medical Expenses written off Rs. 81,997/- Rs. 8,21,997/- However, the AO was not convinced with the above submission of the assessee on the ground that it had never offered this as income in any of the earlier assessment years. Therefore, the AO disallowed the above amount of Rs. 8,21,997/-. 3.1 In appeal, the Ld. CIT(A) affirmed the above disallowance on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HL) and designated the same as the SPV required for undertaking the project. The assessee owned 74% of the share capital of the SPV for which it had paid Rs. 7,40,000/-. However, the NHAI rejected the application to designate JSHL as the SPV. As a result, the SPV was wound up and since no consideration was received by the assessee on account of winding up of the SPV, the entire investment in JSHL was written off. In the instant case, the write off is nothing but write off of an expenditure on an abandoned project ; the project in question had inextricable link with the assessee's existing business and hence, the expenditure is allowable as revenue expenditure u/s 37(1) of the Act. On the basis of the above reasons, we delete the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is merit in the contentions of the assessee before the Ld. CIT(A) that "Mr. Pradeep Singh(Group head of public sector initiatives) having experience of 34 years was authorized to handle the process identifying a buyer to exit from Dheeru Powergen Limited and also to discuss, negotiate and finalize the drafts of the agreement. That in financial year 2012-13, the team was successful in negotiating the deal with a buyer for purchase of Dheeru Powergen Ltd. at an upfront consideration of Rs. 15 crore. That the payment of bonus was commensurate with the efforts rendered by the team over a period of time in order to exit the Project." Considering the above, we delete the ad-hoc disallowance of Rs. 22,08,975/- made by the AO. 4.4 As the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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