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TMI Blog2011 (1) TMI 1373X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the circumstances of the case and in law, the ld CIT (A) erred in allowing the bad debt of `.1,44,367/- ignoring the fact that the assessee could not prove the fact that the alleged debt has become bad. Reliance is placed on the Hon'ble Madras High Court decision in the case of South India Surgical Co. Ltd., 201 CTR 289 (Mad). 2. On the facts and in the circumstances of the case and in law, the ld CIT (A) erred in allowing the sundry balances written off at `.27,892/- just for the reason that the amounts represent minor balances related to the business without appreciating the facts of the case.' 3. The short reason for which the Assessing Officer disallowed claim of bad debt of `.1,44,367 as also claim of sundry balances of `.27,892 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f TRF Ltd v. CIT (323 ITR 397) and in any event, learned CIT (A) had remitted the matter to the file of the Assessing Officer for carrying out necessary factual verifications. We see no infirmity in the order of the CIT (A) and approve the same. 6. Ground Nos.1 & 2 are thus dismissed. 7. In Ground No.3, the Assessing Officer has raised the following grievance: " On the facts and in the circumstances of the case and in law, the ld CIT (A) erred in holding that no allocation on account of interest and finance charges, sales promotion expenses and license fee aggregating to `.6,00,559/- can be done on the basis of the turnover to the eligible unit for computation of deduction u/s. 10B without appreciating the findings of the AO in the right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It is also observed that the assessee's capital and reserve/income of the EOU unit is far in excess of the original investment in the EOU unit. Therefore, no part of the interest on unsecured loan is to be allocated to the EOU as the own fund of the assessee at the beginning of the year is far in excess of investment by the assessee in the EOU. There is merit in the appellant's contention that allocation of interest has to be done on the basis of capital employed and not on the basis of turnover. However, the appellant has not pressed the allocation done by the AO on account of internet charges, payment to auditors, appeal fees and guest house expenditure, therefore, the said amount can only be considered by the AO for the calculation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T v. Arawali Construction Co.(P)Ltd., 259 ITR 30(Raj) and Maruti Udyog Ltd v DCIT, 92 ITD 19(Del)." 13. In view of the Special Bench decision in the case of Amway India Enterprises vs DCIT (111 ITD SB 112), as learned representatives agree, this matter is to be examined afresh by the Assessing officer. We direct the AO to re-examine the matter in the light of the correct legal position as, inter alia, laid down by the Special Bench in Amway's case (supra) after giving due opportunity of hearing to the assessee by way of a speaking order and in accordance with the law. 14. Ground No.4 is allowed for statistical purposes. 15. In the result, the appeal is partly allowed for statistical purposes. Pronounced in the open court on 28th January ..... X X X X Extracts X X X X X X X X Extracts X X X X
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