TMI Blog2014 (11) TMI 1221X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the details before A.O. However, A.O. disallowed on the reason that assessee has not justified why the amounts are written off. Ld. CIT(A) examined the details and found that most of them are advances in the course of business paid over to more than 200 people and since the amounts are written off in the books of accounts they are eligible for deduction. Both on facts as well as on law, order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 30,29,932 and bad debts written off of ₹ 8,02,143. A.O. disallowed on the reason that evidence was not provided to show why the advances/ bad debts had been written off. Assessee submitted the details before A.O. which in turn, were furnished before Ld. CIT(A) also. Ld. CIT(A) considered the facts and the law on the issue and gave relief holding as under: 5.3. I have seen car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es through cash in hand is duly reflected in the books of account. 5.4. With respect to the bad debt, the appellant has provided all possible details of the running account is and has also provided evidence to show that the debt had become non-recoverable as the entity in question had gone insolvent. 5.5. . 5.6 From the above decision it is clear that the appellant does not have to estab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited vs. CIT 323 ITR 397 of the Hon ble Supreme Court holding that assessee does not have to establish beyond doubt that the debt had indeed become bad. He also followed the decision of Hon ble jurisdictional High Court in the case of CIT vs. Sirpur Paper Mills Ltd., 334 ITR 656 and CIT-II vs. Inventa Chemicals ITA.No.186 of 2013. Revenue has preferred appeal only on the advances written off stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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