2015 (10) TMI 1874

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....t. Assessee electronically filed its return of income for A.Y. 2006-07 on 28.12.2006 declaring total loss of Rs. 12,30,846/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) and the total loss was determined at Rs. 8,11,919/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 01.07.2011 granted partial relief to the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Assessee is now in appeal before us and has raised the following effective ground:- 1. The Learned Commissioner (Appeal) erred in confirming the disallowance of Rs. 3, 74,860/-being advances given to transporters on invalid ground that it is provision and not actual writte....

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....ssee mentioning that the assessee has not taken any step to recover outstanding dues from the parties with whom the amount is outstanding. The A.O also contended that the advances were given to the transporters for on the way expenses which could not be adjusted against final bills submitted by the contractor. With these findings, the A.O disallowed the claim of the assessee of Rs. 374860/- on account of Provisions for bad advances. On the contrary, the Ld. A.R on behalf of appellant submitted that the appellant is in the business of transportation. During the course of business of transportation , the appellant had to give the advances to the contractors at the beginning of the trip for on the way expenses. As per the normal practice of pr....

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....equent years. It was therefore submitted that Assessee be allowed deduction in the year under consideration or in the alternate suitable directions be given to AO to allow it as deduction in the years in which Assessee has debited the sum as bad debts. The ld. A.R. placed on record the copy of the computation of income for A.Y. 2008-09, grouping of bad and doubtful debts and the audited accounts in her support. She further placed reliance on the decision of Ahmedabad Tribunal in the case of Perfect Equipments vs. DCIT 85 ITD 50 (Ahmedabad) for the proposition that the Hon'ble Tribunal could give direction in relation to any assessment year which is not before it but is necessary for disposal of appeal. The ld. D.R. on the other hand support....