2023 (3) TMI 927

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....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 appellant was not entitled to the alternative claim of trading loss unde....

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....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 accounts which relate to the earlier accounting periods and such debits cannot be allowed against ....

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....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 before this court, more particulars, the order impugned herein. 7. We find that the claim of bad debts made by the appellant / assessee was....