2011 (10) TMI 748 - AT - Income Tax

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

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.