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TMI Blog2015 (10) TMI 1874X X X X Extracts X X X X X X X X Extracts X X X X ..... is written off as irrecoverable in the accounts of the Assessee subject to provisions of Section 36(2) of the Act. In the present case, since the Assessee has not written off the amount in the books of accounts, we are of the view that the amount was rightly disallowed by A.O and therefore find no reason to interfere with the order of ld. CIT(A). With respect to allowing the deduction in subsequent years, Before us, ld. A.R. has submitted that the amount which were claimed as “provision for bad debts” were in fact have been written off in subsequent years and in subsequent year, when the same have been written off in A.Y. 08-09, Assessee has not claimed the deduction in A.Y. 08-09 and therefore Assessee should not be denied the claim a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in confirming the disallowance of ₹ 3, 74,860/-being advances given to transporters on invalid ground that it is provision and not actual written off in books of account though advances given during the normal course of business. 4. During the course of assessment proceedings and on perusing the details furnished by the Assessee, A.O noticed that Assessee has debited a sum of ₹ 3,74,860/- under the head provisions for bad debts . Assessee was asked to justify its claim to which Assessee submitted that during the course of transport business, Assessee had given advances to the contractors for the expenses which was also a normal practice in the business. On completion of the trip and on failure of the concerned partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f business of transportation , the appellant had to give the advances to the contractors at the beginning of the trip for on the way expenses. As per the normal practice of profession of transportation business, every time such type of advances given to the drivers. After completion of the trip or periodically, the concern contractor made the bills and accordingly the advances given are adjusted against the sum payable to them. In some of the cases, the party had left the work in the way after paying advances. Such a result, the said advances remain unadjusted in the books of accounts. In the year under consideration, the management of the appellant company decided to provide for such advances as not recoverable in books of accounts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition that the Hon ble Tribunal could give direction in relation to any assessment year which is not before it but is necessary for disposal of appeal. The ld. D.R. on the other hand supported the order of A.O and ld. CIT(A). 7. We have heard the rival submissions and perused the material on record. It is an undisputed fact that during the year under consideration, the Assessee had debited a sum of ₹ 3,74,860/- under the head provision for bad debts and had claimed it as deduction. It is also an undisputed fact that the amount were not written off in the books of accounts in the year under consideration. According to Section 36(1)(vii), the Assessee can claim deduction of the amount of any bad debt or part thereof only of the por ..... X X X X Extracts X X X X X X X X Extracts X X X X
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