2022 (11) TMI 1199

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....ncome Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2004-2005. 2. The assessee has raised the following grounds of appeal: 1. Dismissing the ground taken by the Appellant challenging the reopening of the assessment for the reasons recorded by the AO 2. Dismissing the ground taken by the Appellant against the AO having passed an order without complying with the specific requirements as carved out by Hon'ble Supreme Court of India in the case of GKN Driveshafts (India) Ltd. vs ITO, as reported at (2003) 259 ITR 19 (SC) 3. Confirming the addition of Rs.22,43,329/- which was made by invoking the provisions of section 68 of the Act. 4. Not entertaining the additional....

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....peal to the Ld. CIT(A) who has also confirmed the order of the AO. However, the assessee during the appellate proceedings has filed the additional ground of appeal by contending that out of amount of Rs. 22,43,329/- a sum of Rs. 16,43,329/- has been shown as received from the debtors. Thus, if the impugned amount of Rs. 16,43,329/- is treated as unexplained cash credit u/s 68 of the Act, then the corresponding amount of debtors should be allowed as deduction under the provisions of section 36(1)(vii) of the Act. As per the assessee the impugned amount of Rs.16,43,329/- was not recoverable from the debtors, therefore the same should be allowed as deduction. 8. However, the Ld. CIT(A) disregarded the contention of the assessee by observing....

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....hand, the Ld. DR vehemently supported the order of the authorities below. 12. We have heard the rival contentions of both the parties and perused the materials available on record. There is no dispute as far as the addition made by the authorities below to the extent of Rs. 22,43,329/- under the provisions of section 68 of the Act. What has been pleaded by the assessee before the Ld.CIT(A) is to allow the bad debts for Rs. 16,43,329 only. The details of the same stand as under: Sr. No. Date Name of the debtor Amt. Realized (Rs.) 1. 16/03/2004 Mahavir Petrolium 1,97,360.00 2. -do- Mayur Scrap Re-Cyling Co. P. Ltd. 1,49,639.00 3. -do- Metro Steel Traders 2,00,000.00 4. -do- Metro Ste....