2014 (2) TMI 466

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.....1,16,42,148/-." 3. We have heard both the sides and perused the material placed before us. We find this issue to be squarely covered in favour of the assessee by the decision of ITAT in assessee's own case for the immediately preceding year wherein the ITAT, vide order dated 19th October, 2012 in ITA No.3255/Del/2011 & C.O. No.234/Del/2011, deleted the addition with the following finding:- "12. We have heard the rival parties and have gone through the material placed on record. We have noted that Managing Director and whole time Director (Operations) who were paid commission on the basis of duly passed Board Resolution and was in accordance with the provisions of the Companies act. The payment of Commission is necessarily a part of s....

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....es rendered by him as per terms of appointment as a managing director." In the present case also, the payment of commission was paid to Managing Director and Director (Operations) as per their terms of appointment as is apparent from Board Resolution placed at page 8 & 9 of the paper book. Therefore, in view of the above, we hold that the payment of commission was a genuine business expenditure and we do not see any reason to interfere in the order of ld.CIT(A). In view of the above, the first ground of the revenue is dismissed." 4. Admittedly, the facts for the year under consideration are identical and in the preceding year, the ITAT considered similar facts and, applying the decision of Hon'ble Jurisdictional High Court in the case....

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....led by the assessee is dismissed." 7. In the year under consideration also, the Assessing Officer has disallowed 20% of total foreign travel expenses. Admittedly, the facts of the year under consideration are identical to the immediately preceding year. Therefore, respectfully following the decision of ITAT in the immediately preceding year, we reverse the order of learned CIT(A) on this point and restore that of the Assessing Officer. Accordingly, ground No.2 of the Revenue's appeal is allowed. 8. Ground Nos.3 & 4 of the Revenue's appeal, which read as under, are dealt with together:- "3. The ld.CIT(A) erred in law and on facts in deleting the addition on account of bad debts written off amounting to Rs.9,35,706/-. 4. The ld.CI....

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...., therefore, submitted that the order of learned CIT(A) should be sustained. 10. Learned DR, on the other hand, relied upon the order of the Assessing Officer and she stated that the Assessing Officer has given adequate reason for disallowance out of bad debts as well as for making the addition with regard to cessation of liability. 11. We have carefully considered the submissions of both the sides and perused the material placed before us. So far as the addition for cessation of liability is concerned, we are of the opinion that the assessee itself has considered the cessation of liability as its income. Therefore, no further addition can be made. So far as allowability of bad debts is concerned, Hon'ble Apex Court in the case of T.R....