2002 (10) TMI 46

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....e-tax Act, 1961 (for short, "the Act"). The appellant is a private limited company engaged in the business of canvassing advertisements for newspapers, periodicals, etc., and is an assessee to income-tax under the Act. The assessment year concerned is 1992-93. According to the appellant, the modus operandi adopted by it is that it, as an agent, canvasses advertisements for Malayala Manorama, Mathr....

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....hould have been allowed as bad debt or, at any rate, as a business expenditure. The assessing authority did not allow the deduction. The appellant filed appeal before the Commissioner of Income-tax (Appeals), Cochin, against such disallowance. However, the first appellate authority dismissed the appeal and the same was confirmed by the Tribunal in further appeal by the appellant. Shri V. Ramacha....

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....ed out that the assessee had contended before the authorities that the turnover of the advertisement charges cannot be taken for the purpose of special audit under section 44AB of the Act, and the same was accepted. The senior counsel further submits that the assessing authority was bound to grant the deduction, since he did not have a case that the expenses incurred are not incurred in connection....

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....ceived have not paid any portion of the advertisement charges or that the appellant had paid advertisement charges in respect of such advertisements to the newspapers. There is also material to show that the payments, if any, had been made during the accounting period relevant to the assessment year in question. In the above circumstances, so far as the claim is concerned, it is not possible for u....