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2021 (5) TMI 1051 - ITAT MUMBAIWrite off of bad debts - loss suffered during trading at National Spot Exchange - alternate claim of allowing irrecoverable bad debts as ‘business loss’ u/s 28(1)/37(1) - Whether the assessee is entitled for the benefit of write off of bad debts on amounts irrecoverable from transactions at NSEL? - CIT(A) has rejected the claim of assessee inter alia on the ground that the loss from transactions at NSEL is speculative - HELD THAT:- We find that in the case of M/s. Megh Sakariya International P. Ltd. [2018 (9) TMI 1961 - ITAT CHENNAI] under somewhat similar set of facts where the assessee therein had claimed write off of bad debts in respect of transactions at NSEL, the Assessing Officer rejected assesses claim being premature, the Tribunal allowed the claim of assessee. Similar view was taken by Indore Bench of the Tribunal in identical set of facts in the case of Mohan Jain [2019 (2) TMI 367 - ITAT INDORE] There is discrepancy in quantum of claim of write off of debts before the Assessing Officer and the CIT(A). Taking into consideration entire facts, we deem it appropriate to restore this issue back to the file of Assessing Officer for examining assessee’s return of income/assessment order in the preceding assessment years wherein the income from transactions at NSEL were allegedly offered and accepted as ‘Business Income’, contract notes etc. to ascertain the transactions being actual delivery based and to iron out inconsistencies in the amount of claim. AO shall allow reasonable opportunity of hearing to the assessee, in accordance with law. In view of our above findings, ground no. 1 to 4 of the appeal are allowed for statistical purpose, in the terms aforesaid. Disallowance of TDS credit - AOhas allowed credit only to the extent in part - HELD THAT:- We deem it appropriate to restore this issue back to the file of Assessing Officer for re-verification/reconciliation of TDS credit claimed by the assessee with the documents/statements furnished by the assessee. The assessee is directed to furnish relevant documents before the Assessing Officer for reconciliation of tax credit. The Assessing Officer shall grant the benefit of tax credit after examining the statements and reconciliation, in accordance with law. The ground No.6 is allowed for statistical purpose.
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