2016 (10) TMI 159

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....r of M/s.Satnarayan Steel Industries which is in the business of Iron and Steel Re-rolling Mill and Weighbridge. Assessee filed her return of income for AY 2008-09 on 27/08/2009 declaring total income of Rs. 11,20,690/-. The case was selected for scrutiny and thereafter assessment was framed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") vide order dated 27/12/2010 and the total income was determined at Rs. 27,90,270/-. Aggrieved by the order of the Assessing Officer (AO), assessee carried the matter before the ld.CIT(A), who vide order dated 15/02/2012 (in Appeal No.CIT(A)/XX/614/10-11) dismissed the appeal of the assessee. Aggrieved by the order of ld.CIT(A), assessee is now in appeal before us. 2.2. On t....

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....grieved by the order of AO, assessee carried the matter before the ld.CIT(A), who dismissed the appeal of the assessee by observing as under:- "2.2. I have considered the submissions made by the A.R. of the appellant and the observations of the assessing officer in the assessment order. For the detailed reasons mentioned at para-5 of the assessment order, AO disallowed the balance written off in respect of M/s.Satyanaran Steel Rolling Mill. In the written submissions it is claimed that part of the amount written off represented sales made to the party and the balance represented advances towards purchases from the party. As regards alleged sales made, appellant has not been able to substantiate that such sales formed part of appell....

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....ludes Rs. 5,13,088/- on account of sale of waste and scrap which could not be recovered by the assessee and the sales of which were credited in the books of accounts in earlier years. As far as the writing off of balances amount of Rs. 16,69,583/- is concerned, it was submitted that it represents the advances given by the assessee towards purchases of raw-materials in earlier assessment years which could not be recovered. Assessee also relied on the decision of Hon'ble Apex Court in the case of TRF Ltd. vs. CIT reported in 323 ITR 397 and submitted that the assessee's claim be allowed. Ld.Sr.DR, on the other hand, supported the orders of AO & ld.CIT(A) and submitted that assessee has not furnished any details before any of the authorities i....

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....for purchase of raw-material of Rs. 11,56,495/- is concerned, no details of the same have been furnished by the assessee. Further, in the present case, assessee has not furnished details in support of its contention of having fulfilled the conditions specified u/s.36 of the Act for claiming deduction. We further find that before us, assessee has claimed that the issue is covered in her favour by the decision of Hon'ble Apex Court in the case of TRF Ltd.(supra). We find that there is no finding on the same by ld.CIT(A) in his order. We find that Hon'ble Supreme Court in the case of TRF Ltd.(supra), has observed that after the amendment of section 36(1)(vii) w.e.f. 01/04/1989 in order to obtain a deduction in relation to bad debts, it is not ....