2015 (10) TMI 1382

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....ed above are discussed in brief. The assessee firm is engaged in the business of buying and selling of chemicals. During the year under consideration, the assessee claimed deduction of Rs. 10,25,758/- towards bad debts. Even though the assessee had written off the debts as bad in its books of account, it could not file any details in respect of following ten parties: S. No. Name of parties Amount (Rs.) Outstanding since 01 Rinku Dye Chem P Ltd. 60,000 1997-98 02 Hardeep Lifters (Acetone) 25,000 1997-98 03 Pefco Ind. Ltd 10,000 1997-98 04 Royalchem Products 10,000 1997-98 05 Search Chem Industries Ltd 8,602 2002-03 06 The Mysore Paper Mills Ltd 10,000 1997-98....

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....ntered with the above said parties and further failed to prove that they were offered to tax in earlier years. The Ld CIT(A) rejected the alternative contention of the assessee for allowing the claim u/s 37(1) of the Act on the reasoning that the assessee is required to produce particulars to show that the loss was incurred during the year under consideration. Accordingly, the Ld CIT(A) dismissed the appeal filed by the assessee. Aggrieved, the assessee has filed this appeal before us. 6. The Ld A.R drew our attention to the paper book filed by the assessee, wherein the assessee has placed evidences relating to fire accident and submitted that the assessee was not in a position to furnish the details that were called for by the AO, since....

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....l the records were destroyed in the fire accident. There is no dispute between the parties that there was fire accident in the business premises of the assessee. Under these circumstances, in our view, one should duly take into account the inability of the assessee to produce the necessary details due to the reasons beyond its control. As submitted by the Ld A.R, the names of all the parties, except "Smooth Sky Tours Pvt Ltd" shows that they are also in chemical business. Under these circumstances, in our view, there is some merit in the contention of the assessee that they are trade debtors. The very fact that these amounts are outstanding since 1997-98 (almost 10 years old) would show that the assessee had cut off the relationship with th....