2023 (3) TMI 927

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ns of law: " 1. Whether the Tribunal was right in not considering the details filed in the paper book containing the amounts advanced, step taken to recover advance, copies of the legal notices with acknowledgments/Court Decree/ledger extracts, in respect of all the 14 defaulters? 2. Whether the Tribunal was right in holding that advance made to the suppliers of raw material/service providers during the earlier years which became irrevocable advance cannot be claimed as business loss or bad debt?" However, the question of law re-framed and the following question of law was admitted: "Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the appell....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....levant portion of the First Appellate Authority order is extracted here under: "1)All the debit balances written off during the impugned period were outstanding even as on 01.04.1997 and the nature of these balances is not known. No details are available regarding the actual advances made to these parties prior to this date. In the absence of such details and evidence, it is not possible to say anything about the nature of the debit balances carried over and written off during the impugned accounting period. 2) Except in few cases, in all the other cases, proper legal action have not been taken by the appellant to recover the dues. 3) Some of the debit balances also include expenditure items debited in these accou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... other cases the opening balances as on 01.04.1997 have been carried forward from year to year, more or less, as such. The nature of transactions resulting in these debit balances cannot be known from the copies of account appearing in the paper book. 7. There is no evidence either to show that the conditions of section 36(2) are satisfied or that these balances represent 'trading losses' relating to AY 2001-02. 8. In view of the facts and circumstances discussed in the above paragraphs we see no reason to interfere with the conclusions reached by the CIT(A)...." 5. Aggrieved over the order of the Tribunal, the appellant / assessee filed the present appeal. 6. Heard both sides and perused the materials placed....