2021 (10) TMI 1477

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....not affording reasonable opportunity of hearing to the assessee. At the time of hearing, this ground is not pressed by the assessee and therefore the same is dismissed as not pressed. 3. The issue raised in ground No.2 is against the order of Ld. CIT(A) upholding the order of Assistant Commissioner of Income Tax(hereinafter referred to as the ACIT) thereby affirming a sum of Rs.4,21,55,018/- being bad debts claimed under section 36(1)(vii) read with section 36(2) of the Act on the ground that assessee has not filed any details during the assessment and remand proceedings. 4. The facts in brief are that the assessment under section 143(3) of the Act was completed on 12.01.2006 assessing total loss of Rs.4,86,500/- as against the return....

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....f shares with the appellant. In view of the Hon'ble ITAT's directions, the Assessing Officer wanted to examine the recoverable part of the debts. However, the appellant didn't comply. Vide letter dated 4th October, 2013 addressed to the CIT(A)-38 the appellant mentioned "The Tribunal by its order dated 10.08.2011 has remanded the matter back to the files of the Assessing Officer for a limited issue of reducing from debtors, the amount recoverable from sale proceeds of shares, if any, held by our clients of such debtors. We on behalf of our abovenamed clients submit that there are no securities held by our clients and hence, there could have been no adjustment from the debtors. Thus, the entire bad debt debited to the profit and ....

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....)-38 the assessee mentioned that the Tribunal by its order dated 10.08.2011 has remanded matter back to the file of the AO for a limited issue for reducing from debtors amount receivable from sale proceeds of shares if any held by the assessee on behalf of such debtors. We find that the assessee submitted before ld CIT(A) that there were no security held and hence there is no question of adjustment of sale proceeds of shares from the debtors and thus the entire bad debts debited to P&L account are to be allowed. The Ld. CIT(A) further observed that the assessee has not filed any evidences even during the course of set aside proceedings before the AO as well as before him despite the several opportunities being given to the assessee and acco....