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2014 (6) TMI 186 - KARNATAKA HIGH COURTPermission from Committee of disputes - Disallowance of claim of bad debts as per Explanation to clause (vii) read with clause (viia) of section 36(1) of the Act Held that:- Revenue submitted that it was not open to the assessee to raise an issue of disallowance of bad debts before the FAA arising from the order of assessment passed after the order dated October 10, 2003, passed by the Commissioner in revision u/s 263 of the Act - he submitted that the order dated March 28, 2002 had attained finality - it was not open to the appellate authority to consider the issue of disallowance of bad debts and allow the appeal - This position has not been disputed he submitted that he has no objection for remand of the matter to the first appellate authority to consider the issue of disallowance of bad debts afresh including the contentions urged by Mr. K. V. Aravind - when the Revenue filed an appeal against the order of the FAA before the Tribunal, they had raised the issue in the present appeal and before the Tribunal they challenged the order of the first appellate authority in respect of the disallowance of bad debts on the merits thus, the matter is required to be remitted back to the FAA for fresh adjudication Decided in favour of Revenue. Deletion of accrued interest on broken period Held that:- During the pendency of the appeal, the Revenue informs the court that the COD refused permission to file an appeal - the appeal raising the substantial question is not maintainable and the question need not be answered Relying upon Electronics Corporation of India Ltd. v. Union of India [2011 (2) TMI 3 - Supreme Court] - permission of the COD in fact was not required - revenue could not and did not convince to take the matter further in view of the Office Memorandum Decided against Revenue. Permission from Committee of Disputes Subsequent restoration of appeal not recorded Adjustment of book profits u/s 115JA of the Act Held that:- The Tribunal dismissed the appeal of the Revenue on the assumption that permission was refused by the COD and, therefore, the Tribunal did not record any finding on the merits of the case and the Tribunal dismissed the appeal without reserving liberty to the Revenue to file a fresh appeal after obtaining permission of the COD - the COD granted permission to file an appeal before the court against the order of the Tribunal on the same issue and, the matter is required to be remanded back to the Tribunal for fresh adjudication Decided in favour of Revenue.
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