TaxTMI 
TaxTMI 
2024 (10) TMI 701
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....34 written off in the books of account as business expenditure. He erred in not appreciating that although the claim was made by the appellant under the head 'bad debts', it is nothing but the loss, which was incurred. was incidental to the regular business activity carried out by the appellant. ii. The learned CIT(A) erred in not directing the assessing officer to delete the adhoc disallowance of INR 3,95,526/- made being 20% of INR 19,77,628 of the expenses debited to P & L account under the head staff welfare expenses, marketing development expenses, conveyance expenses, travelling and conveyance expenses and miscellaneous expenses. iii. The learned assessing officer erred in levying interest under Sections 234B....
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....ssions advanced by both the sides in the right of record placed before us. 2.3. It is noted that the assessee had raised the issue before the Ld. CIT(A) and all necessary evidences in support to consider the issue was very much available on record. The issue raised by the assessee deserves to be considered, in order to determine the correct the computation of income in the hands of the assessee. Considering the submissions and respectfully following the decisions of Hon'ble Supreme Court in case of National Thermal Power Co. Ltd.Vs. CIT reported in (1998) 229 ITR 383 and Jute Corporation of India Ltd. Vs. CIT reported in 187 ITR 688, we admit the additional ground raised by the assessee. Accordingly, the additional grounds filed by as....
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....tion index notified by the Central Govt. Is based on average price index pertaining to Indian economy, and therefore the CII notified by Central Govt. cannot not be made applicable for the shares of company situated in Switzerland. The Ld.AO further noted that for purchase and sale of shares in Switzerland there is hardly any inflation in Switzerland. C. 20% disallowance out of various expenses amounting to Rs. 3,95,526/-. The Ld.AO disallowed 20% of expenses incurred in cash of Rs. 3,95,526/- considering the same as being unverifiable, and not said to have been laid out or expended wholly and exclusively for the purpose of business of the assessee. Aggrieved by the order of the Ld.AO, the assessee preferred appeal befo....
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....laimed during the year under consideration. II. In respect of the payment of advance made to M/s.Archis Agro Services, the Ld.AR submitted that, it was towards development of garden within the factory premises. It is submitted that this payment was incurred for maintenance and development and maintenance of the garden on regular basis within the factory premises, which was not properly carried out by the service provider. III. In respect to the payment made towards M/s.Urmi Chemicals, the Ld.AR submitted that this was made for supply of raw materials in the Financial Year 2010-11. He submitted that the vendor short supplied the raw materials to the extent of Rs. 19,405/-. It was submitted that, neither did the vendor compl....
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....elow, which was not considered in proper perspective. 4.4. He submitted that, the only reason for disallowance being made by the Ld.AO/NFAC is, non-satisfaction of the conditions u/s 36(1)(vii) as well as section 36(2) of the Act. He submitted that the alternative plea of treating the above expenses, either as business expenditure or granting the same as business loss was also not verified by the Ld.CIT(A), though as specific ground was raised in ground no. 1, and detailed submission was provided in the statement of facts. Before the Ld.CIT(A), it was submitted that there is no contrary observation of the Ld.AO in respect of thse expenditure being not in the nature of business exigencies may be allowed as a business expenditure. The Ld.A....
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.... business, and that, it was wrongly claimed as bad debts, no disallowance can be made any further and assessee has to be granted benefit under the relevant provision of the Act. The assessee is directed to file all the relevant document in support of the expenditure before the Ld.CIT(A). The Ld.CIT(A) is directed to verify the same and pass a detailed order on merits. Needless to say the proper opportunity of being heard must be granted to the assessee Accordingly, we allow the additional ground raised by the assessee and ground no 1 raised by the assessee is kept open. 5. Ground no. 2 is in respect of the adhoc disallowance sustained by the Ld.CIT(A) debited in the P & L A/c under the head staff welfare expenses, marketing developmen....