9911796707
TMI Blog2015 (10) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... denied by any of the authorities. We find that the EIPL had confirmed the order of the AO as he was of the opinion that amount was not written off during the year under appeal. From the paper book filed by the assessee, it is find the amount has been written off in the year under consideration. In these circumstances, we are of the opinion, that in the interest of justice, matter should be restored back to the file of FAA to decide the issue afresh after affording reasonable opportunity of hearing of the assessee. Decided in favour of assessee by way of remand. - IT APPEAL NO. 171 (GAU) OF 2013 - - - Dated:- 30-1-2015 - H.L. KARWA AND RAJENDRA, JJ. For The Appellant : Sanjay Mody, AR For The Respondent : C. Deepak Singh, DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used to purchase raw material from the said EIPL. The assessee filed certain documents in its support. The AO held that EIPL had dispatched the goods as per the orders of the assessee; that it did not take delivery; that the supply refused the advance money; that bad debt was admissible for deduction if it was taken into account in computing the total income of the previous years in which it was written off or earlier year, the amount in question was an advance paid against the purchase of raw material, it could not be said that amount was taken into account for computing the total income of the assessee, that bad debt was liable if it was written off has irrecoverable in the books of the assessee in the previous year in which the claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the FAA. He referred to page No. 1 to 4 of the paper book. 5. We have heard rival submission and perused the material before us. We find that the disputed amount was paid to EIPL as an advance for purchasing the raw material; that the assessee did not honour the transaction; that the EIPL refused to return the money. In the circumstances, it cannot be said that it was a bad debt actually it was not a debt at all. It was an advance only, so the assessee cannot get the benefit of Section 36 of the Act. However, the claim made by the assessee about business loss has to be considered because the genuineness of the payment and its relation with the business of the assessee is not denied by any of the authorities. We find that the EIPL ..... X X X X Extracts X X X X X X X X Extracts X X X X
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