TaxTMI 
TaxTMI 
2016 (4) TMI 652
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....question of law: "Whether the Income Tax Appellate Tribunal has substantially erred in law and on facts in confirming CIT (A)'s order by allowing the claim as bad debts, the advances for other than regular business of the assessee whose corresponding income or sales were not offered in the previous year?" 2. The assessment year is 2008-09 and the relevant accounting period is the previous year 2007-08. The assessee was engaged in the trading of gold jewellery, land and shares for the year under consideration and claimed bad debts amounting to Rs. 5,24,59,472/-. The Assessing Officer allowed the bad debts in respect of A. P. Sayona Trade Association amounting to Rs. 9,06,980/- and the balance amount of Rs. 5,15,52,492/- was added to the ....
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....ant year. It was submitted that therefore, the claim of assessee for applicability of section 36(1)(vii) of the Act is not satisfied and the assessee failed to prove the same as trading loss. It was, accordingly, urged that the Tribunal was not justified in confirming the order passed by the Commissioner (Appeals) and that the appeal requires consideration on the question as proposed or as may be formulated by the court. 4. The facts as emerging from the record reveal that the respondent assessee had claimed that certain debts had become bad in respect of seven parties. The Assessing Officer declined the claim in respect of six parties and allowed the bad debt deduction in respect of A. P. Sayona Trade Association. In respect of two of the....
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....tial quantities of agricultural processed goods, including dehydrated garlic flakes and white onion powder, and it was in this connection that the assessee bona fide and in the course of normal business, gave advances to S.Y.P. Exporter, Sakar Overseas Pvt. Ltd. and Shri Ram Trading Co. It was also noted that criminal cases were also instituted against the persons who were given these advances, who turned out to be fraudulent in their conduct. These advances were accordingly held to be business loss. 6. The Tribunal, after considering the material on record, found that it was an undisputed position that the assessee did in fact trade in processed agricultural produce, in connection with which the advances in question were made, and it was ....