TaxTMI 
TaxTMI 
2015 (8) TMI 1199
X X X X Extracts X X X X
X X X X Extracts X X X X
....hey are heard together and disposed of by this common order. 2. The first issue in the appeal of the assessee for the assessment year 2004-05 is that the Commissioner of Income-tax (Appeals) failed to appreciate that liability is a real liability but it is disputed for quantum by the assessee and hence cannot be treated as contingent liability to be disallowed. 3. Brief facts are that the Assessing Officer while completing the assessment disallowed Rs. 9,14,750 representing electricity charges payable by the assessee on the ground that the assessee is contesting the demand raised by the Electricity Board and therefore the liability is yet to be crystallised. The Assessing Officer held that the liability is uncertain and contingent liabili....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Central Government. This notification is issued in exercise of powers conferred by sub-section (2) of section 145 of the Income-tax Act by the Central Government notifying the accounting standards to be followed by all the assessees following mercantile system of accounting. Sub-clause (4) of the said notification in respect of Accounting Standard 1 relating to disclosure of accounting policies reads as under : "(4) Accounting policies adopted by an assessee should be such so as to represent a true and fair view of the state of affairs of the business, profession or vocation in the financial statements prepared and presented on the basis of such accounting policies. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eekeyar Freight Forwarders engaged in freight transportation on the ground that the assessee has not deducted TDS and thus invoked the provisions of section 40(a)(ia) of the Act. It was the contention of the assessee that these expenses are only reimbursement and therefore provisions of TDS are not applicable. On appeal, the Commissioner of Income-tax (Appeals) sustained the disallowance. Now the assessee is in appeal before us for both assessment years. 10. Counsel for the assessee submits that all these expenses were reimbursement and therefore, provisions of section 40(a)(ia) have no application. He places reliance on the decision of the Jaipur Bench of this Tribunal in the case Asst. CIT v. Seaward Exports P. Ltd. [2012] 17 ITR (Trib) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....allowed under section 40(a)(ia) of the Act. The Assessing Officer shall carry out the directions accordingly, after giving adequate opportunity to the assessee. 13. The next issue in the appeal of the assessee for the assessment year 2008-09 is that the Commissioner of Income-tax (Appeals) is not justified in sustaining the order of the Assessing Officer in disallowing the bad debts written off. 14. Brief facts are that the Assessing Officer while completing the assessment disallowed Rs. 1,87,940 which was debited under the head "bad debts" stating that out of Rs. 1,87,940 an amount of Rs. 18,440 represents debts due from the Ministry of Defence and the remaining amount of Rs. 1,69,500 is loss on account of irrecoverable advances which wa....