TaxTMI 
TaxTMI 
2015 (12) TMI 615
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.... 3. In ground no.2, the assessee has raised the following grievance:- "2. Ld CIT(A) erred in law and on facts in confirming disallowance of claim of bad debt of Rs. 8,00,000/- made by AO though the amounts have been written off in the books of accounts by the appellant. Both the lower authorities failed to appreciate the fact that the advances written off were made out of commercial expediency and complete details as to name, address of the parties along with ledger account were submitted. Ld. CIT(A) ought to have deleted such disallowance. 4. Briefly stated, the relevant material facts are as follows. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed bad debts deduction i....
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.... admissible as deduction under section 28 of the Act, in the light of the law laid down by Hon'ble jurisdictional High Court in the case of CIT vs. Abdul Razak & Co. (136 ITR 825), the factual elements embedded in stand of the assessee remain unsubstantiated. It is for the assessee to demonstrate at least by way of corroborative evidences, that the amounts were advanced in the course of, and for the purposes of business and have become unrecoverable. No such exercise has been carried out on the facts of this case. We, therefore, approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. 7. Ground no.2 is thus dismissed. 8. In third ground of appeal, the assessee has raised the following grievance: ....
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....Ld. CIT(A) has erred in law and on facts in confirming disallowance of Rs. 55,234/- out of staff welfare expenses by AO on adhoc basis without appreciating the fact that these expenses were incurred for providing lunch, tea/coffee to staff members. Ld. CIT(A) ought to have allowed the same. 5. Ld. CIT(A) has erred in law and on facts in confirming disallowance of Rs. 79,695/- out of travelling expenses on adhoc basis by AO without giving any cogent reason for such disallowance. Ld. CIT(A) ought to have deleted such adhoc disallowance. 6. Ld. CIT(A) has erred in law and on facts in confirming disallowance of Rs. 1,34,856/- made by AO out of vehicle expenses, depreciation on vehicles and car lease rentals @ 10% of total expe....
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....oja expense are purely on adhoc basis and there is no cogent basis, save and except for generalities, for the same. We are unable to see any legally sustainable merits in the same. In view of these discussions, we consider it fit and proper to delete the impugned disallowances. The assessee gets the relief accordingly. 16. Ground nos.4 to 7 are thus allowed. 17. In ground no.8, the assessee has raised the following grievance:- "8. Ld. CIT(A) has erred in law and on fact in confirming disallowance of Rs. 8,05,892/- out of interest expenses made by AO by working out average rate of interest to be notionally charged on interest free loans and advances. Ld. CIT(A) ought to have allowed interest expenses claimed that were incurred....