2012 (7) TMI 763

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....sp; PER : D.K. TYAGI, JUDICIAL MEMBER   This is Revenue's appeal against the order of ld. CIT(A)-1, Surat dated 16.03.2009. 2. The Revenue has taken following two effective grounds:- "On the facts and circumstances of the case and in law, ld. CIT(A) has erred in deleting the additions of Rs.15,38,129/- made u/s 145A and allowing deductions on the same. On the facts and circumst....

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....me and if the figure is negative, the deduction can be claimed. The A.O., however, did not accept this explanation saying that as per the guidance note of ICAI, there will be no effect in respect of adjustment u/s Section 145A. The A.O., therefore, disallowed the deduction of Rs.15,38,129/-. 4. Before ld. CIT(A) the assessee filed copies of tax audited report of the current year as well as the ....

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....ng the assessment proceeding the A.O. observed that the assessee has claimed bad debts of Rs.2,41,001/- in respect of M/s Pack Print Services, Rs.4,00,893/- in respect of M/s Global Textile Processors and Rs.25,339/- in respect of M/s Vijay Laxmi Textile Pvt. Ltd., totaling to Rs.6,67,233/-. The assessee was asked to substantiate its claim. The assessee replied that they had received the payment f....

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....cial year 2003- 04. Therefore, the amount is not very old and simply writing letters does not amount to make full effort to recover these amounts. He therefore, disallowed the debt. 7. Before ld. CIT(A) the assessee's contention was that the bad debts now claimed were part of its income in earlier years which has also been admitted by the A.O. and the same have been now written off in their boo....