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2014 (5) TMI 224 - KARNATAKA HIGH COURTDeletion of disallowance of sundry debtors – Debtors not disclosed during the search – Bogus transactions – books/ accounts not maintained u/s 36(1)(vii) of the Act – T.R.F. Ltd., v. CIT [2010 (2) TMI 211 - SUPREME COURT] not considered - Held that:- It is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable - It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee - the AO has not examined whether the debt has, in fact, been written off in the accounts of the assessee – thus, the order of the Tribunal is set aside and the matter is remanded to the Appellate Authority for fresh adjudication – Decided in favour of Revenue. Point of levy of surcharge u/s 113 of the Act - Deletion of levy of surcharge by the AO – Held that:- Following CIT v. K.C. Puttaswamy Gowda [2011 (7) TMI 572 - KARNATAKA HIGH COURT] – the proviso to section 113 of the Act is curative in nature and it merely clarifies that for a relevant date for applicability of the financial year would be the year in which the search is initiated u/s 158BC - surcharge is payable by the assessee – Decided in favour of Revenue. Condonation of delay of three months – Charging of interest u/s 158BFA(1) of the Act – Held that:- Following CIT v. K.L. Srihari [2009 (7) TMI 858 - KARNATAKA HIGH COURT] - the Tribunal is clearly in error in directing the deletion of the interest part on the tax amount as ultimately determined but for the period during which there is a delay in filing the return – Decided in favour of Revenue.
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