2021 (7) TMI 276

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....nd in the circumstances of the case and in law, the CIT(A) erred in sustaining addition in respect of various expenses incurred under the head "Other Minor Miscellaneous Advances Written Off Rs. 294025." 2. Facts giving rise to the present appeal are that case of the assessee was picked up for scrutiny assessment for limited scrutiny under CASS. The Assessing Officer while framing the assessment, called upon the assessee to explain regarding provision of doubtful receivables of Rs. 11,67,087/-; bad debts of Rs. 29,55,869/- and Advances written off of Rs. 29,55,189/- Thereby, the Assessing Officer assessed the income at Rs. 29,55,189/- against the returned income at NIL. The Assessing Officer further directed that the assessee had paid taxe....

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....disallowance stated to be for service tax paid, amounting to Rs. 11,97,876/-. At page 1 of the paper book, the break-up of the said amount is given. Your Honour would be pleased to notice on a perusal thereof that a sum of Rs. 10,44,134/- in fact relates to an excess payment made to service provider which was subsequently written off. The said party's ledger account is at page 2 of the paper book, and evidences that the assessee receives services from M/s. Converse New Media Pvt. Ltd. As of 31.03.2015 (page 4 of paper book), a sum of Rs. 10,44,134/- as paid to the said party in excess against services rendered has been written off. A sample invoice of the said party is enclosed at page 5 of the paper book. With regard to the residual ....

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....lowance in respect of advances to suppliers/purchases as written off. The tabulation of the said party is at page 75 of the paper book. In respect of each party, the relevant ledger accounts are provided as under:- S. No. Particulars Ledger Amount Reason   1. Internet & Mobile Association of India 3,000 PB76 @ 76 Non Receipt of Bills 2. Getjar Networks Limited 2,19,957 PB77 Written off considered bad 3. Ibibo Group Pvt.Ltd. 31,568 PB79@80 Written off considered bad 4. ISO Bar A Division of Agies Pvt.Ltd. 60,625 PB81@ 86 Balance outstanding written off 5. Interest on Professional Tax payable (19,250) PB87 Excess Interest written off 6. Short & Excess (1,820) PB88     &n....