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TMI Blog2014 (2) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondent : Shri Keyur Patel, Sr. DR ORDER Per A. D. Jain, Judicial Member: This is Assessee's appeal for Assessment Year 2008-09 against the order dated 11.05.2012, passed by the Ld. CIT(A)-VIII, New Delhi, taking the following grounds:- "1. That the order u/s 250(6) passed by the Hon'ble CIT(A) is bad in Law, wrong on facts and against the principles of natural justice . 2. (a) The Hon'ble CIT(A) has erred in confirming the disallowance of a sum of Rs.2,16,17,150/- claimed by the appellant company under the head 'Bad Debts Written Off' on the ground that the aforesaid claim for bad debts remained unsubstantiated. (b) The Hon'ble CIT(A) has confirmed the disallowance out of bad debts on the grounds that bad de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of section 36(2) of the Income Tax Act. (d) The Hon'ble CIT(A) has concluded that some of the parties whose balance have been written off during the year under appeal have stated in the reply to notices u/s 133(6) that there is no transaction with the appellant company without appreciating the fact that the transactions with the aforesaid parties were carried out during the years 1996-1998 and hence the transactions were more than 10 years old and the aforesaid parties must have written off the balance of the appellant company in their books in earlier years and therefore there was no account of the appellant company in their books in F.Y 2007-08 which testifies the fact that the debts were irrecoverable and correctly written off b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of ten parties, replies had been received, whereas one party did not reply and two of the notices had returned unserved. On the basis of the inquiries made the Assessing Officer observed that in the cases of Farmat India Ltd., Himani Alloys, Raipur Alloys, S.K. Carbon Hi-tech Trade, they had denied any business transaction with the assessee company; that Hi- tech Traders and Consultants (P) Ltd. had gone to the extent saying that they had not had any business transaction with the assessee company for the preceding ten years; that similarly, Jindal Steel and Power had also denied any business transaction with the assessee company; that when confronted with these facts, the assessee could not give any convincing reply; that Allmet Alloy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's appeal on this issue, observed as follows:- " ....... It is observed that the following parties denied having any business transaction with the appellant .. i) Format India Ltd. ii) Himani Fero Alloys iii) Raipur Alloys iv) S.K. Carbar v) High Tech Trade vi) Jindal Steel and Power It is also seen that M/s Allmet Alloys India (P) Ltd and M/s Om Prakash Rakesh Kumar had admitted that they had transactions with the appellant company. No reply was received from M/s Venkey Steel (P) Ltd. and letters sent to Shri Abid Ali Emran Ali and M/s Haryana Steel were return back unserved. In the case of M/s Om Prakash Rakesh Kumar who vide their reply had stated that they had transactions with the appellant, summons U/S 131 wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case, it is seen that many of the parties have denied having any business transactions with the appellant. This shows that the bonafide of the write off has not been established by the appellant. The appellant has also not submitted any evidences before the A.O. to show whether the amount claimed as bad debts were taken as income in the earlier years. In view of the findings above, it is held that since the appellant has not fulfilled the conditions prescribed in section 36(i)(vii) read with section 36(2) of the I.T. Act, the disallowance made by the A.O on account of bad debts is as per law. This ground of appeal is dismissed." 5. Challenging the impugned order, the ld. Counsel for the assessee has placed reliance on 'TRF Ltd. vs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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