2018 (9) TMI 702

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....ent appeal has been filed by assessee against order dated 23/01/2015 passed by Ld. CIT (A)-15, New Delhi for assessment year 2010-11 on following grounds of appeal: "1. That the order passes by the learned Commissioner of Income Tax (Appeals) is bad in law. 2. That the learned Commissioner of Income Tax (Appeal), erred in confirmed the addition of Rs. 20,00,000/- being provision made for doubt....

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.... added back said amount in computation of income. Ld. A.O. accordingly vide show cause notice dated 07/03/13, called upon assessee, as to why provision for doubtful advances should not be added back to total income of assessee. 4. Assessee in response to show cause, submitted that, it is registered NBFC with RBI, it had made payment of Rs. 20 lakhs for membership of OTC (Delhi stock exchange). It....

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....assessee is in appeal before us now. 10. The only issue raised by assessee is regarding alleged payment of Rs. 20 Lacs, towards membership of OTC (Delhi stock exchange). Ld. AR submitted that membership of OTC enables assessee to use its facilities and do not result in creation of asset of enduring nature so as to held expenditure as capital in nature. It was submitted that these are merely an en....

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.... rejected membership application of assessee and did not refund the amount. It was under these circumstances that assessee had written off Rs. 20 Lacs as bad debts. 12. Ld. DR, at this juncture, submitted that had the amount to be actually bad, assessee would have initiated some legal proceedings against Delhi stock exchange for refund of such huge money. He submitted that assessee does not fulfi....