TaxTMI 
TaxTMI 
2017 (2) TMI 408
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....ving regard to the facts and circumstances of the case Ld. CJT(A) has erred in law and on facts in confirming the disallowance of Rs. 2,34,000/- paid on account of professional fees after deduction of TDS (net paid Rs. 2,21,130/-) under an agreement to the Management Consultancy Firm engaged for providing technical, financial, marketing collaboration in area synergic to our existing lines of operation i.e., B&W Television picture tubes and computer monitor tubes so as to improve the economical and financial position of the company. The Ld. CIT(A) ignored the detailed written submission dated 16.08.2005 submitted during first appeal proceedings. 3. That having regard to the facts and circumstances of the case Ld. CIT(A) has erred in law and on facts in confirming the disallowance of Rs. 6,00,000/- paid on account of commission to M/S Bharat Puria Finance & Investment Ltd. Vide cheque No. 521970 dated 09.02.2000 for Rs. 1,00,000/- and cheque No. 522055 dated 30.05.2000 for Rs. 5,00,000/- toward service to represent the company case before financial institutions and banks for one time settlement of loans and waiver of interest. The Ld. CIT(A) failed to appreciate that the company g....
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.... of the learned Commissioner of Income-tax (Appeals), the assessee is in appeal before the Tribunal raising the grounds as reproduced above. 3. The ground No. 1 relates to confirming of the disallowance of Rs. 67,096/- on account of depreciation @ of 25% on insurance claim of Rs. 2,68,386/- received during the year against DG set. 3.1 The facts in respect of the issue of claims paid/written off, the assessee furnished details before the Assessing Officer that insurance claim of Rs. 12,43,508/-in respect of DG set breakdown was passed to the extent of Rs. 2,68,386/- by the insurance company and the balance amount was written off. However, according to the Assessing Officer as per the provisions of section43(1) of the Act the actual cost of the asset means the actual cost of the asset to the assessee reduced by that portion of the cost thereof, if any, met directly or indirectly by any the person or authority and, therefore, written down value/cost of the said DG set was to be reduced by the amount of insurance claim received of Rs. 2,68,386/- and, accordingly, he disallowed the depreciation @ 25%, amounting to Rs. 67,096/- on the amount of insurance claim received. 3.2 The ....
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....allowance of Rs. 67,096/- confirmed by the learned Commissioner of Income-tax (Appeals) out of the depreciation claimed on DG set. 4. The ground No. 2 relates to disallowance of Rs. 2,34,000/- paid on account of professional fees. 4.1 The facts in respect of issue in dispute are that the assessee entered into an agreement with M/s ARBEITEN FUR(INDIA) Inc., New Delhi, a consultancy firm for services of management/consultation for collaboration with foreign company for revival of the assessee company. It was claimed by the assessee company that as per the terms of agreement with M/s ARBEITEN FUR (INDIA) Inc, the assessee company paid Rs. 50,000/- on 12/01/2001 on signing the agreement and Rs. 1,84,000/- on 25/04/2001 by account payee cheque after deducting tax at source on such professional charges, however, after sometime the said consultancy firm disappeared and the assessee could not trace despite best efforts and, therefore, the assessee company wrote off the professional fees paid of Rs. 2,34,000/- as irrecoverable balance written off. The above explanation of the assessee was not accepted by the Assessing Officer on the following grounds: (i) That agreement was not sig....
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....or the purpose of business of the assessee company. 4.5 We have heard the rival submission of the parties and perused the relevant material on record, including the pages of the paper book referred by the learned Authorized Representative. We find that the main agreement between the assessee company and M/s. "ARBEITEN" is not clear, whether it was for revival of the assessee company or for targeting companies in the line of the business of the assessee or another lines of business, but in supplementary agreement, which is placed on page 41 of the assesses paper book, it is mentioned by the Managing Director of the assessee company that it was not in a position to infuse any fresh capital required in a new venture through the technical and financial collaboration arranged by the second party. Thus, this part of the agreement indicates that the consultancy expenses were for the purpose of establishing a new venture and not for running of the existing business. Further, the Assessing Officer has already pointed out main agreement was not witnessed by any person. On perusal of copy of collaborator's profile placed on pages 43 to 58 of the assessee's paper book, we find that it is no....
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....gned order that no new material was brought before him in respect of claim of deduction of bad debt written off, and accordingly, he upheld the disallowance of Rs. 2,26,88,161/- for bad debt written off. 6.3 Before us, the learned Authorized Representative of the assessee referred to pages 65 to 79 of the assessee's paper book, which are copy of accounts of debtors, whose accounts were written off by the assessee as bad debt and submitted that for claiming bad debts under section 36(1)(vii) of the Act, it was not necessary to establish, whether the debt has become irrecoverable and it was enough, if the bad debt was written off a irrecoverable in the accounts of the assessee. In support of the above contention the learned Authorized Representative relied on the decision of the Hon'ble Supreme Court in the case of TRF Ltd. Vs. CIT, (2010) 190 taxmann 391 (SC). It was submitted by the learned Authorized Representative that accounts of the debtor in the books of accounts of the assessee were written off to the extent of bad debt claimed, and therefore, claim of bad debt is in accordance with law and allowable. 6.4 On the other hand, the learned Senior Departmental Representative....