2022 (4) TMI 1116

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....against the confirmation of disallowance of Rs. 72,12,274/- by ld CIT(A) as made by the AO on account of bad debts written off. 3. The facts in brief are that the assessee has written of bad debts in the P&L Account of Rs. 72,12,274/-during the year. Accordingly, the AO called upon the assessee to furnish the justification for the same. The assessee filed the details before the AO in respect of these bad debts, however, AO rejected the claim of the assessee on the ground that assessee has not filed any documentary evidences and accordingly added the same to the income of the assessee. 4. In the appellate proceedings, the Ld. CIT(A) also dismissed the appeal of the assessee on this issue and hence the assessee is in appeal before us. 5....

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....written off as non recoverable have duly been submitted by the assessee before the authorities below. We note that at page No.53, 54 & 55 of the paper book the copies of invoices are available and these are duly appearing in the ledger account of the assessee, a copy whereof is filed at page No.56 of the paper book. Similarly, the copy of invoices as filed at page No.100 & 101 were duly recorded in the ledger of the assessee a copy whereof is filed at page No.102 of the paper book. In view of these facts, we are of the considered view that assessee is entitled to the claim of bad debts in terms of section 36(1)(vii) read with section 36(2) of the Act. Moreover, the case of the assessee is squarely covered by the decision of the Apex Court i....

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....have considered rival submissions and perused materials on record. As could be seen from the facts emanating from record, in course of assessment proceedings the assessee to some extent has reconciled the discrepancies pointed out as per the AIR information. However, in respect of payments alleged to have been received from certain parties, the assessee though made all efforts to obtain information from the concerned parties, however, it failed in its attempt. It is evident, simply because the assessee was unable to reconcile a part of the payment allegedly received as per AIR information, the Assessing Officer proceeded to make the addition without making any further enquiry. As rightly observed by the learned Commissioner (Appeals), the m....

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....nd Coyping 5,00,784 Photocopying charges 1,23,306 Security charges 1,77,623 Brokerage 2,38,974 Firm Meetings 1,117 Total 30,96,315 13. The AO during the course of assessment proceedings vide order sheet entry dated 15.12.2008 called upon the assessee as to why the appropriate disallowance be not made in respect of sundry expenses as the assessee has failed to file the details in respect of these expenses and finally added a sum of Rs. 6,19,263/- being 1/5th of the sundry expense of Rs. 30,96,315/- on the ground that verification of the said expenses could not be made. 14. In the appellate proceedings the Ld. CIT(A) partly allowed the appeal of the assessee by restricting the disallowance to 10% of the total expense....