2015 (8) TMI 985

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...., Adv. ORDER CM No.14171/2015 1. For the reasons stated in the application, the delay of 35 days in re-filing the appeal is condoned. 2. The application stands disposed of. ITA 562/2015 3. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act') is directed against an order dated 31st October, 2014 passed by the Income Tax Appellate Tribunal (&#39....

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....he amount collected by them with the Accounts Department of Taj Hotels the very next day. The Assessee learnt that its staff from telemarketing had collected the membership fee but had failed to deposit it with IHCL. IHCL discovered a shortfall of Rs. 37.50 lakhs and demanded payment from the Assessee. The Assessee informed the AO that it had filed a civil and criminal case against the delinquent ....

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....e financially liable to IHCL. The CIT (A) also rejected the plea of the Assessee that it could write off the above expenses as bad debts under Section 36(1)(vii) read with Section 36(2) of the Act. 8. The ITAT in the impugned order agreed with the Assessee that there was no hope of the Assessee recovering from its former employees who had embezzled the funds the amount paid to IHCL. Consequentl....

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....cted by way of cash will be deposited on the same day with the cashier of IHCL. Cheques could be collected in the name of IHCL. In the light of the above clauses, the explanation offered by the Assessee that some of its employees had effected sales of Diners Club cards of and failed to deposit the amount collected appears to be plausible and ought to have been accepted by the AO and the CIT (A). T....