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2022 (9) TMI 101
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....Rs.2,87,24,679/- made by the Assessing Officer on account of sundry debtors written off to Rs.6,14,213/-. 3. The assessee, in the present case, is a company which is engaged in the business of mechanical engineering and construction & erection of plant. The return of income for the year under consideration was filed by it on 10.09.2010 declaring a total income of Rs.38,88,48,000/-. The said return was selected for scrutiny and a notice under Section 143(2) of the Act was issued by the Assessing Officer to the assessee on 25.08.2011. In the Profit and Loss Account filed along with its return of income, a sum of Rs.3,00,82,304/- was debited by the assessee-company on account of sundry debtors written off. During the course of assessment pr....
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....s. Reliance Petroleum Ltd 5,34,960 Store items and PPE issued by debtor co. The same was adjusted against the bill. The amount is not booked and certified by the debtor co. in its accounts. M/s. Heuerty Petrochem India Pvt Ltd 2,27,50,000 The claim of the assessee was not entertained by the debtor co. The amount is not booked and certified by the debtor co. in its accounts. M/s. Siemens India Ltd 17,83,358 The claim of the assessee was not entertained by the debtor co. The amount is not booked and certified by the debtor co. in its accounts. 4. In order to verify the claim of the assessee, the Assessing Officer required the assessee to produce the copies of its accounts from the books of the debtor companies showi....
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....the amount, which is sought to be written off should have be taken into account as income of the assessee in the previous year relevant to the assessment year or in the earlier previous years. In the case of appellant, while explaining each and every debt, it has shown that the debts have been written off in its books of account during the year and were shown as income in the earlier year/s. The objections raised by AO that debtor companies have not claimed these amounts in their books of account or they have rejected the claims of appellant or TDS is not made on these amounts or these amounts have been claimed excessively or otherwise, do not make any relevance in the light of decision of Hon'ble Supreme Court in the aforesaid case. Si....
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....,213/- is not allowable as an expenditure to appellant u/s. 36(1)(vii) of the Act. The AO is directed to disallow the expenditure of Rs. 6,14,213/- in place of Rs. 2,87,24,679/- disallowed by him. This ground is partly allowed." 6. The learned Departmental Representative submitted that there was nothing brought on record by the assessee during the course of assessment proceedings before the Assessing Officer to show that the amount in question written off as bad debt was already offered by the assessee company as its income in the year under consideration or in the earlier years. He contended that this condition for claiming deduction on account of bad debts written off thus was not satisfied by the assessee and this aspect was completel....
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.... creditors was duly made by the assessee while explaining the reasons before the Assessing Officer for non-acceptance of the said bills by the concerned debtors. We also find merit in the contention of the learned Counsel for the assessee that the fact that these amounts were appearing as sundry debtors in the books of account of the assessee shows that the corresponding bills were duly accounted for by the assessee in its books of account and the income was duly recognized. Moreover, the learned CIT(A) in paragraph No. 2.3 of his impugned order has clearly stated that these debts having been written off in the books of account of the assessee-company in the year under consideration and having already been credited as income in the precedin....
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....sing Officer on account of Attimari Coolie expenses was challenged by the assessee in the appeal filed before the learned CIT(A) and after considering the submissions made by the assessee as well as the material available on record, the learned CIT(A) restricted the disallowance made by the Assessing Officer on this issue to the extent of 25% for the following reasons given in paragraph No. 3.2 of his impugned order:- "3.2 I have considered the facts of the case and submissions of appellant. Since my predecessor has already dealt with this issue on identical facts in the preceding year in the case of appellant only and restricted the disallowance to 25% of total expenses, respectfully following the same, I also restrict the disallo....