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TMI Blog2013 (5) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... M/2011 - - - Dated:- 5-4-2013 - Shri D. Karunakara Rao And Shri Vivek Varma,JJ. For the Appellant : Shri O. P. Meena, Sr. AR For the Respondent : Shri Vimal Punmiya ORDER Per D. Karunakara Rao, AM:- There are two appeals under consideration involving two different AYs and both the appeals are filed by the Revenue against the separate orders of CIT (A)-6, Mumbai. For the sake of convenience, these two appeals are clubbed and are being adjudicated in this common order. Appeal wise adjudication is taken up as under: ITA NO. 7441/M/2011 - AY: 2004-05 2. Firstly, we shall take up the appeal ITA NO. 7441/M/2011 which is filed by the Revenue on 4.11.2011 is against the order of CIT (A)-6, Mumbai dated 12.8.2011 for the AY 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32,772/- disallowed by the AO) and (iv) travelling and conveyance expenses of Rs. 1,31,324/- (out of Rs. 2,62,648/- disallowed by the AO). Accordingly, AO initiated the penalty proceedings u/s 271(1)(c) of the Act and levied penalty accordingly. Assessee filed an appeal before CIT(A) against these orders. 4.1. Assessee submitted before the CIT (A) that the major disallowance on which the penalty is levied relates to the issue of bad debts written off of Rs. 13,14,123/-. Without going into detail, assessee submitted that the penalty are invoked when there is willful default and concealment of income/particulars. When assessee is having carried forward losses, then there is no necessity to create willful default by debiting bad debts as ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us Ld DR relied on the order of the AO. 6. On the other hand, Ld Counsel for the assessee supported on the order of the CIT (A). 7. We have heard both the parties and perused the orders of the AO as well as the CIT (A) and perused the material placed before us. It is noticed that the assessee has adequate carried forward losses. It is also noticed that the assessee has duly furnished particulars and nothing is dug out by the AO out side the books or Returns of income. Thus, it is case of bona fide claim. It is a settled law that all disallowable claims made by the assessee in the return does not attract the provisions of section 271(1)(c) of the Act for allegations of concealment or deemed concealment of income. Regarding bad de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brics job work. Assessee field its return declaring NIL income (business loss of Rs. 7,80,98,174/-). AO processed the same u/s 143(3) of the Act and determined the total income at Rs.8,85,62,380/- after making certain disallowances (i) u/s 14A of Rs. 13,960/-; (ii) travelling and conveyance expenses of Rs. 5,86,724/- and (iii) Advance from customers of Rs. 10,44,021/-. Aggrieved, assessee filed an appeal before the CIT (A). 11. During the course of first appellate proceedings, CIT (A) deleted the addition made by the AO after considering the submissions made before him and the relevant paras 3 to 3.2 are extracted here under for the sake of completeness of the order:- "Ground No.3 is regarding the addition of from customer Rs. 10,44,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce there was difference also and same was reconciled. There was no second question except above from advance from customer. In view of the above the addition made by the Deputy Commissioner of Income Tax without asking for the detail is as bad in law. Hence, we request your honour to grant us the relief in the above case. 3.2. The appellant furnished name, addresses, total amount and PAN and ledger account to the AO. The appellant has also submitted that except in case of Laxmi Niwas Narasinha Das of Rs. 7,374/-, all other advances either became NIL or was recovered in the next year ie 2009-2010 and the advance of Laxmi Niwas Narsinha Das has become NIL in the year 2010-11. In the circumstances, there is no justification for addition and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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