2021 (4) TMI 487

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....ng the facts of the case, the ld. Authorized Representative for the assessee submitted that assessee had filed his return of income for the impugned assessment year on 31/08/2015 declaring total income of Rs. 18,48,070/-. Thereafter, the assessee filed revised return of income on 30/03/2017 claiming loss of Rs. 5,04,601/- which includes loss on account investment in National Spot Exchange amounting to Rs. 31,03,225/-. The assessee set off said loss made against speculation business profits. The Assessing Officer rejected assessee's claim of loss made in the revised return on the ground that the loss pertains to earlier years and hence, cannot be allowed in the year under consideration. Aggrieved by the assessment order dated 20/10/2017 ....

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....ions placed reliance on the following decisions: (i) Remi Securities Limited vs. ACIT, ITA No. 3649/Mum/2018. (ii) The Jt. CIT (OSD)2(10(1) vs. M/s. Aditya Commodities Pvt. Ltd. ITA No. 1971/Mum/2018. (iii) M/s. Remi Sales and Engineering Limited vs. ACIT ITA No. 3650/Mum/2018 (iv) Omni Lens Pvt. Ltd. vs. DCIT, ITA No. 2818/Ahd/2017. 2.2. The ld. Authorized Representative for the assessee further submitted that the CIT(A) has erred in observing that the claim of bad debts was not made by the assessee before the Assessing Officer. The assessee made claim of bad debts before the Assessing Officer and the amount of bad debts is written off in the books of account. To support his submissions, the ld. Authorized Representative for the a....

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....ssing Officer has not considered the claim of the assessee at all though the assessee had made submissions before the Assessing Officer during the assessment proceedings on two occasions i.e. on 26/09/2017 and again on 16/10/2017. The communication on behalf of assessee is available at pages 65 and 63 of the Paper Book. In first appellate proceedings, the CIT(A) refused to grant relief to the assessee on the ground that the assessee has not made his claim of bad debts before the Assessing Officer. The finding of the CIT(A) are contrary to the documents furnished by the assessee in Paper Book. 6. It is an undisputed fact that the transactions carried out by the assessee at NSEL were in the financial year 2013-14. The assessee suffered losse....

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....n the accounts of the assessee. Admittedly, in the case before us, the assessee company had 'written off' 25% of the balance outstanding from NSEL i.e. Rs. 1,98,70,000/- as a 'bad debt' in its books of accounts for the year under consideration. As observed by us hereinabove, the only reasoning for declining of the aforesaid claim of the assessee by the lower authorities was that as the case was under investigation and the seized assets were yet to be realized, therefore, the aforesaid claim of the assessee was premature. In our considered view, the aforesaid observations of the lower authorities are not in conformity with the settled position of law. As observed by the Hon'ble Supreme Court in the case of TRF Ltd. Vs. CI....