TaxTMI 
TaxTMI 
2025 (4) TMI 2044
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.... was not based on facts and it is submitted that the appellant had fulfilled all the requirements of Section 36(1)(vii) read with Section 36(2)(i) of the Income Tax Act 1961. 4. The Appellant submits that a sum of Rs. 9,43,47.085/- was due from M/s Prakash Vanijya Pvt ltd on account of sale of Mango pulp during the year ended 31/03/2012 for a total revenue of Rs. 12,45.99,414/-. 5. The Appellant submits for the above sum of Rs. 12.45,99,414/- was taken into account as sales during the year ended 31/03/2012. 6. The Appellant during the course of appeal proceedings and during the course of remand proceedings before the Assessing Officer the appellant had filed complete details of transaction including the ledger copies and the financial statements of the appellant for various Assessment Years from AY 2012-13. 7. The Commissioner of Income Tax (Appeals) did not take into account the details filed and in Para 9.4 of the Order concluded in the absence of documents specified in Para 9.4 the appellant had not fulfilled the conditions specified in. 8. The Appellant submits that following documents were submitted during the appeal proceedings bef....
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....le made by the assessee. Even, for the notice issued by the AO u/s.133(6) to M/s. Prakash Vanijya Pvt. Ltd, there was no response received. Further, for the summons issued by the AO on 07.12.2018 to the five directors of the assessee company also there was no compliance. Therefore, the AO has disallowed the claim of bad debts written off by the assessee amounting to Rs. 9,43,47,085/- and added the same to the income of the assessee. 4. Aggrieved, the assessee has challenged order of assessment before the Ld.CIT(A). The Ld.CIT(A) after analysing the facts of the assessee has observed in para 9.3 to 9.5 as under:- "9.3 Thus, contrary to appellant's claim that only one condition has been prescribed, there are actually two conditions prescribed in the Circular, viz., (a) if it is written off as irrecoverable in the books of accounts of the assessee for that previous year (which is fulfilled) and (b) it fulfils the conditions stipulated in the sub section (2) of sub-section 36(2) of the Act. These two are connected by the word "and" which means that both the conditions must be simultaneously fulfilled and not in isolation. 9.4. As mentioned briefly above, the pl....
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....f or of an earlier previous year or not, details of customs duty, purchase orders of assessee, standalone or sample invoices are not relevant. 9.5. On the basis of above discussion, I feel that the appellant has failed to fulfill the requirements of section 36(1)(vii) read with 36(2)(i) and Para 4 of Circular no. 12 cited supra." The CIT(A) also sought support to the guidelines laid down by the Hon'ble Supreme Court in the case of PCIT Vs. Khyati Realtors Pvt.Ltd. (SLP (Civil) No.672 of 2020) (2022) 141 taxmann.com 461, by observed as under: "it is evident that condition of section 36(2) must be fulfilled and it is the onus of assessee to prove. In the present appeal, as discussed thread bare in para 9.4 supra, the appellant failed to prove that it fulfilled the requirement of section 36(2)(i) of the Act." 5. Aggrieved by the order of the CIT(A), now assessee is in present appeal before us. 6. The learned counsel for the assessee has referred to para 6 of the Ld.CIT(A) order and contended that the AO in his remand report has accepted that assessee has filed all documents except confirmation letters from the said parties. The observation of the C....
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.... of Prakash Vanijya Private Limited in the books of account as on 31.03.2016 20 13. 18.12.2018 Reply to the Show Cause Notice 21 14. - Invoice(s) raised in the name of Prakash Vanijya Pvt. Ltd 25 15. - Letter of Confirmation for orders placed by Prakash Vanijya Pvt. Ltd 47 16. - Proforma Invoice(s) raised in the name of Prakash Vanijya Pvt. Ltd 49 17. - Bank account statement of the appellant maintained in HSBC 56 18. - Bank account statement of the appellant maintained in HSBC 59 19. - Financials of the appellant for the AY: 2015 - 16 61 FIRST APPELLATE PROCEEDINGS 20. 10.02.2021 Written Submissions filed before the First Appellate Authority 67 21. 04.10.2019 Written Submissions filed before the First Appellate Authority 70 REMAND PROCEEDINGS 22. - Index to the paperbook filed during remand proceedings 71 23. - Response filed before the Assessing Officer 72 24. - Ledger account of the Prakash Vanijya Pvt. Ltd in the book of the appellant as on 31.03.2012 76 25. - Ledger account of the Prakash Vanijya Pvt. Ltd in the book ....