TaxTMI 
TaxTMI 
2014 (7) TMI 801
X X X X Extracts X X X X
X X X X Extracts X X X X
.... vide order dated 30.12.2008. 2. The appeal raises three grounds, which we shall take up in seriatim. The first ground is qua the claim for bad debts in the sum of Rs. 27.05 lacs. The same, though written off in accounts, stood disallowed by the Assessing Officer (A.O.) as the assessee did not provide party-wise details of the claim, so that even the identity of the debts claimed bad was not known. A honest judgment for write off has to be shown, as the provision would otherwise become a handy tool for tax evasion. As it appeared, the debts had merely been written off without exercise of any discretion. The claim was accordingly disallowed. In appeal, the assessee furnishing the relevant details, a remand report was called for (PB pgs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uld he do so without as much as considering the party-wise details on which the A.O. has himself commented upon. We accordingly do not find much merit in the said denial, which discretion is to be judicially exercised by the first appellate authority, who enjoy powers wider than an ordinary court of appeal (refer: Prabhavati S. Shah v. CIT [1998] 231 ITR 1 (Bom). 3.2 The detail furnished (PB pg.10) lists 59 parties, of which, barring three, i.e., for Rs. 990/-; Rs. 52/-; and Rs. 2,08,842/-, stand categorized in its accounts by the assessee as 'cancelled', signifying their status. True, as clarified by the hon'ble jurisdictional high court in Oman International Bank SAOG (supra), the write off must be genuine, and the A.O. could for good ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....However, due to a decimal problem in the computer system, a higher prize was allowed to the winner/s, which could not be recouped by the assessee from ITZ. The same, clearly, is in the nature of business loss, allowable in the year in which it stands incurred. The details of redemption furnished (PB pgs.58-59) reveal a claim of Rs. 2,49,342/- arising for the current year. The same in fact exceeds the amount being claimed. How could that be? In any case, there being no examination and, consequently, finding in the matter by the authorities below, the issue qua the deductibility of claim for Rs. 2,08,842/- for the current year is restored back to the file of the A.O., to be decided in accordance with the law, issuing definite findings of fact....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f five days, i.e., beyond the due date of the 15th of the following month (as per section 38 of the Employees Provident Fund Scheme, 1952) be taken into account, which stood not accepted by the A.O., would be to no moment as we find (from the details specified at pg. 4 of the assessment order) all the impugned payments to be made after 20th of the following month. We, accordingly, confirm the disallowance. We decide accordingly. 6. The assessee's third and final ground is toward disallowance of Rs. 52,61,234/-, comprised of interest (Rs.49,13,538/-) and expenditure (Rs.3,47,705/-), u/s.14A of the Act, made with reference to investment in shares of companies and mutual fund units. The disallowance stood effected by the A.O. at the impugne....