2011 (10) TMI 748 - AT - Income Tax

Tribunal dismisses revenue's appeal, remands issues for verification.

M/s Shriram Chits (Kar.) Pvt. Ltd. Versus The Asst. Commissioner of Income-tax, Circle-12 (3), Bangalore.

The Tribunal dismissed the revenue's appeal and remanded certain issues to the AO for proper verification and consideration based on the evidence provided ... - Issues involved: Cross appeals for the assessment years 2005-06.Grounds raised by the Assessee:1. Challenge against the order of the ld. CIT(A)-III.2. Appeal for full relief.3. Dispute over taxation of chits dividend and exemption on grounds of mutuality.4. Disallowance of amounts added by AO u/s 40(a)(ia) of the IT Act.5. Disallowance of various expenses including commission, repairs & maintenance, advertisement, and misc. expenses.Details for Grounds 1-5:- The issue of taxation of chits dividend has been recurring and decided against the assessee for previous years.- Disallowance of expenses under u/s 40(a)(ia) contested by providing details and arguing that TDS was not necessary for certain payments.- The Tribunal remanded the issue to the AO for verification and proper consideration of the evidence provided by the assessee.Grounds raised by the Revenue:1. Dispute over allowing bid loss not debited to P&L account.2. Disallowance of bad debts written off without providing case-wise details.Details for Grounds 1-2:- The issue of bid loss is covered by a previous ITAT decision and pending appeal before the High Court.- Disallowance of bad debts written off contested by providing details, leading to a remand to the AO for verification.Conclusion:- The Tribunal dismissed the revenue's appeal and remanded certain issues to the AO for proper verification and consideration based on the evidence provided by the parties.