2020 (12) TMI 97

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....s in restricting the disallowance from Rs. 1,71,035/- to Rs. 53,373/- made u/s.14A r.w Rule 8D of the Act, 1961. ii) That he ld.CIT(A) has erred in law and on facts in deleting the disallowance of claim of bad debt Rs. 1,73,37,301/-. 3. Brief facts of the case are that the assessee is engaged in trading of printing machines, consumers and servicing. It has filed its return of income on 30.11.2014 declaring total income at Rs. 3,78,60,550/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee on 16.09.2015. During the scrutiny assessment, it was noticed by the AO that the assessee has earned dividend income to the tune of Rs. 9,79,373/- which was ex....

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.... Vs. CIT, 323 ITR 397 (SC). It was submitted by the assessee that the conditions provided in section 36(2)(i)(a) of the Act were satisfied as the amount has been written in the books of accounts of the assessee. The ld.AO did not satisfy with the details and explanation filed by the assessee. He was of the view that since ledger accounts of the nine parties were running and the assessee company had not produced any material on record to substantiate its claim that the said amounts of the debts have become bad and irrecoverable, the claim of the assessee was not justifiable, and therefore, he disallowed claim of the assessee and an amount of Rs. 1,73,37,301/- added to the total income of the assessee. 5. Aggrieved by the order of the ld.A....

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....llowing the claim of the assessee are based on factual position of the case, and therefore, his order on these issues is not to be disturbed. 7. On the other hand, the ld.counsel for the assessee supported the order of the ld.CIT(A). He also relied upon decisions in the case of Karnavati Petro Chem. P. Ld. (ITA No.2228/Ahd/2012 dated 5.7.2013 and Nirma Credit & Capital Ltd. Vs. CIT, 85 taxmann.com 72 (Guj), to the proposition that where net interest is positive, then no disallowance under section 14A is called for. He also relied upon the order of the ITAT, Ahmedabad Bench in the case of DCIT Vs. Adani Infrastructure & Developers P. Ltd. in ITA No.1623/Ahd/2013 dated 6.9.2018. As regards disallowance of bad debts under section 36(1)(v....