2021 (10) TMI 1490

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....ment : Shri Harpal Singh, Sr. DR. ORDER PER AMIT SHUKLA, J.M. The aforesaid appeal has been filed by the revenue against impugned order dated 12.4.2016, passed by Ld. CIT(Appeals)-3, New Delhi for the quantum of assessment passed u/s 143(3) for the assessment year 2013-14 on the following grounds :- "1. Ld. CIT (A) has erred on fact and in law in restricting the disallowance to R....

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....e time of hearing of appeal." 2. At the outset, we find that in so far as the disallowance u/s 14A is concerned, it is an admitted fact that total exempt income earned by the assessee was Rs. 34,000/- on account of dividend income where AO has made the disallowance of Rs. 1,48,08,107/-. Ld. CIT (A) has restricted the disallowance to the extent of exempt income after following the deci....

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....llowed this sum by stating that the same are not allowable u/s 36(2) of the Act. 4. Ld. CIT (A) has deleted the said disallowance after observing as under :- "6.3 I have gone through the facts of the case and the submission made by" the AR. It has been contended that the AO has disallowed the irrecoverable balances which were advanced to employees and drivers, by treating the same as b....

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.... opinion that the facts in this case are similar and therefore, the addition made by the AO is deleted and the ground of appeal is allowed" 5. After hearing both parties we find that it is not a dispute that an amount of Rs. 15,76,774/- which were advanced to the employees and drivers had become irrecoverable and assessee has not claimed as a bad debt but as a business loss, which is clear....