2018 (2) TMI 44

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.... 24/12/2008 framed by ACIT, Central Circle-1(1) and DCIT, Circle-1(1), Jabalpur. As most of the issues raised in these appeals are common, these appeals are being heard together and disposed of by common order for the sake of convenience. 2. First common issue relates to disallowance u/s 14A at Rs. 4,04,227/- and Rs. 3,63,999/- for assessment year 2006-07 and 2007-08 respectively. 3. Heard both the parties and perused the judgments referred. We find that during the course of assessment proceedings for assessment year 2006-07 the Assessing Officer observed that the assessee had made investment to the tune of Rs. 31,89,441/- which are either not generating income or generating exempted income. Such investment included interest free adva....

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....free funds are much more than the impugned investment and therefore, no disallowance of interest expenditure is called for u/s 14A of the Act. The appeal of the assessee for assessment year 2006-07 and ground No. 1 of assessment year 2007-08 are allowed. 3 4. Now we take up ground No. 2 relating to assessment year 2007-08 wherein the assessee is aggrieved with the order of CIT(A) denying the claim of bad debt of Rs. 6,25,840/-. 5. Heard both the parties. We find that during the year employee of the assessee Sunil Kumar Verma who was managing the godown, made embezzlement and sold the cement of around 3,520 bag without the knowledge of the assessee which valued at Rs. 6,75,840/-. The assessee being C&F agent, the principal company issu....