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TMI Blog2015 (4) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... l be high competition, the assessee has been foregoing a higher amount of bid loss. This is due to the principle of the discounted auction flow where one has to forego a higher rate of discount and obtain a specified amount of money rather than at a later date. In other words, the assessee was explaining the principle followed by them, which results in bid loss. What the Assessing Authority wanted was to give evidence that the assessee actually incurred the said loss in following the said principle, which was not furnished. Therefore he disallowed the said bid loss. Therefore, the Tribunal was not justified in setting aside the well considered order passed by the First Appellate Authority. In that view of the matter, the impugned order c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al to the Commissioner of Income Tax (Appeals) who deleted the disallowances of royalty as well as bad-debts, but confirmed the finding of the Assessing Authority in respect of bid-loss, on the ground that in spite of sufficient opportunity being given during the assessment proceedings, remand-report proceedings and even before the First Appellate Court, the assessee has failed to furnish the information, as the principles of the chit-wise number of optional tickets subscribed to, chit-wise dividend income received, chit-wise amount prized amounts obtained, chit-wise discount suffered, what part of the prized amount used for its chit-fund-business, whether the bid-loss claimed is on accrual basis and how the amount of bid-loss claimed was q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue is in appeal. 4. The substantial questions of law that arise for our consideration in these appeals are as under: IN ITA No.920/2008 Whether the Tribunal was correct in holding that a sum of ₹ 7,20,32,155/- should be allowed as a bid loss since the assessee was following Completed Contract Method of accounting without considering the nature of loss on account of which the Assessing Officer and the Appellate Commissioner had disallowed the claim? IN ITA NO.922/2008 1. Whether the Appellate Authorities were correct in holding that the assessee s claim of bad debts is an allowable deduction as per Section 36(1)(vii) r.w.s.36(2) of the Act without taking into account the actual nature of the transaction and the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee actually incurred the said loss in following the said principle, which was not furnished. Therefore he disallowed the said bid loss. In appeal, remand was sought before the First Appellate Court. Even in the course of such remand proceedings, assessee has not produced the said evidence. Therefore, the First Appellate Court was constrained to observe that, inspite of sufficient opportunity given during the assessment proceedings remand-report-proceedings and even before him, the assessee has failed to furnish the factual information as set out in his order except explaining as to the manner of sustaining the said loss and therefore he affirmed the said findings recorded by the Assessing Authority. In appeal, the Tribunal observed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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