2019 (7) TMI 1045

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....uestions as the substantial questions of law in its memorandum of the Tax Appeal : "[A] Whether the Appellate Tribunal has erred in law and on facts in upholding the decision of CIT(A) deleting the disallowance of Rs. 83,71,764/- made on account of setting of STCG against depreciation? [B] Whether the Appellate Tribunal has erred in law and on facts in upholding the decision of CIT(A) deleting the addition of Rs. 20,90,000/- made under section 68 of the Act? [C] Whether the Appellate Tribunal has erred in law and on facts in upholding the decision of CIT(A) deleting the disallowance of Rs. 5,49,74,891/- on account of bad debts written off? [D] Whether the Appellate Tribunal has erred in law and on facts in upholding the decision....

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....o discussed the decision of the Supreme Court in Mahalakshmi Sugar Mills Co.Ltd. (Supra). Ultimately, the Tribunal observed as under, so far as the first proposed question is concerned : "Respectfully following the judgment passed by the Hon'ble Apex Court which decided the issue of the present case relating to setting off STCG against brought forward unabsorbed depreciation in favour of the assessee, we find no justification to interfere with the order passed by the Ld. CIT(A) and dismiss this ground of appeal preferred by the Department." 3.1 In so far as the second question as proposed by the Revenue is concerned, it is with regard to the deletion of the addition of Rs. 20,90,000/- made under Section 68 of the Act. In this regard, t....

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.... furnished by the authorized signatory of the Director were not verified vis-a-vis the records available with the AO in its proper perspective. This finding of the CIT(A) also came to be affirmed by the Appellate Tribunal. 3.3 So far as the question No.C is concerned, as proposed by the Revenue, the findings recorded by the Tribunal are as under : "32. In the matter of TRF Ltd. the Hon'ble Apex court observed as under : "After 01.04.1989, it is necessary for assessee to establish that the debt, in fact, has become irrecoverable of it is written off as irrecoverable in the accounts of the assessee." 32.1 Therefore, once such debts are written off in the books of accounts of the assessee, the claim of bad debts will be available to....

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....ed under the Companies Act and Income Tax Act u/s.44AB of the Act as well and such audited books and tax audit report does not reflect any adverse remarks in this regard. The contention of the assessee that the cash so deposited in the bank account is out of cash available in the hand or out of withdrawals from bank in normal business activity. 37.1 This particular fact is supported by the cash book being a good evidence for source of such cash deposits. The Ld. CIT(A) thus on the basis of the audited books of accounts and in the absence of any adverse comment by tax auditor or finding of incorrect cash book and the recording of transactions and reflections in the books of accounts found no fault on the part of the assessee neither reaso....