2015 (8) TMI 178

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....- "Whether the Appellate Tribunal has substantially erred in partly allowing the amount of Rs. 37,00,447/- out of total disallowance of Rs. 45,31,872/- made on account of deduction in respect of writing off of the irrecoverable advances and other debit balances claimed by the assessee u/s.36(1)(vii) of the I.T. Act?" 2.00. That the assessee Company, engaged in the business of manufacturing and trading Air-Conditioners, filed its return of income for the A.Y. 2005-2006 declaring total income at NIL. The case was selected for scrutiny. That the assessee claimed deduction in respect of the written off of the irrecoverable advances and other debit balances. The assessee written off of an amount of Rs. 14,83,037/- which was claimed a....

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....des, the learned tribunal has partly allowed the said appeal deleting the disallowance of Rs. 7.30 lacs by observing that the said amount was given towards "Employees' Welfare Trust" and the balance amount was towards EMD related to business. The learned tribunal, however, restricted disallowance. 2.06. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A) in confirming the disallowance made by the A.O. of Rs. 14,83,037/- claimed by the assessee as advances written off and disallowance of Rs. 30,48,335/- claimed by the assessee as written off, the assessee preferred appeal before the learned tribunal. 2.07. The learned tribunal, after hearing both the sides, by the impugned judgement and order has partly allow....

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.... to balance amount (Rs.14,83,037/- minus 7,31,425/-). 3.01. Now, so far as the disallowance made by the A.O. of Rs. 30,48,335/-, of which the assessee claimed deduction with respect to the written off, is concerned, the learned tribunal has restricted the disallowance to Rs. 1 Lac considering page Nos.50 and 51 of the Paper Book and having found that the written off amount of Rs. 30,48,835/- contains various amounts which were shown to be not recoverable from the parties, however, it also included Provision for Gratuity, salary payable, PF payable, staff loan, etc., for which full details were not placed before the learned tribunal. Considering the aforesaid facts and circumstances of the case, more particularly page Nos.50 and 51 of ....