2011 (10) TMI 748 - AT - Income Tax

Summary

Issues involved: Cross appeals for the assessment years 2005-06.

Grounds raised by the Assessee:
1. Challenge against the order of the ld. CIT(A)-III.
2. Appeal for full relief.
3. Dispute over taxation of chits dividend and exemption on grounds of mutuality.
4. Disallowance of amounts added by AO u/s 40(a)(ia) of the IT Act.
5. Disallowance of various expenses including commission, repairs & maintenance, advertisement, and misc. expenses.

Details for Grounds 1-5:
- The issue of taxation of chits dividend has been recurring and decided against the assessee for previous years.
- Disallowance of expenses under u/s 40(a)(ia) contested by providing details and arguing that TDS was not necessary for certain payments.
- The Tribunal remanded the issue to the AO for verification and proper consideration of the evidence provided by the assessee.

Grounds raised by the Revenue:
1. Dispute over allowing bid loss not debited to P&L account.
2. Disallowance of bad debts written off without providing case-wise details.

Details for Grounds 1-2:
- The issue of bid loss is covered by a previous ITAT decision and pending appeal before the High Court.
- Disallowance of bad debts written off contested by providing details, leading to a remand to the AO for verification.

Conclusion:
- The Tribunal dismissed the revenue's appeal and remanded certain issues to the AO for proper verification and consideration based on the evidence provided by the parties.