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TMI Blog2017 (1) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is also admittedly not denied by the assessee. Since the assessee has failed to bring on record any material evidence to controvert the finding recorded by the learned CIT(A) on this issue, and finding no merits in the grounds raised by the assessee - Decided against assessee - ITA No.6086/Mum/2014 - - - Dated:- 4-1-2017 - SHRI JASON P BOAZ, AM AND SHRI RAM LAL NEGI, JM For The Assessee : None For The Revenue : Shri Rajat Mittal ORDER PER JASON P BOAZ (A.M): This appeal by the assessee is directed against the order of the CIT(A)-40, Mumbai dated 30/06/2014 for A.Y. 2007-08. 2. The facts of the case, briefly, are as under:- 2.1. The assessee, a company engaged in the business of post production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) persisted with the disallowance. 2. The CIT(A) was not justified in confirming that writing off of debts in the assessee's case is not genuine for the reason that the opening balances of the respective parties were not tallying with the books of the respective parties. 3. The CIT(A) has erred in confirming the disallowance on the fact that the assessee has continued doing the business with all these four parties even after writing off the debt. 4. The hearings in this case were filed on a number of occasions. On all the dates hearing were held, none was present for the assessee, nor was any adjournment sought on its behalf. On a couple of occasions when the Bench did not function, adjournments were granted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to explain away these discrepancies / differences upheld the disallowance made by the AO. The learned DR submitted that since the assessee had failed to bring on record any evidence to explain away the discrepancies / differences or controvert the findings of the learned CIT(A), the impugned order of the learned CIT(A) is to be upheld. 7. We have heard the learned DR and perused and carefully considered the material on record. As observed by the learned CIT(A), the AO had disallowed the assessee s claim for write off of bad debts of the four parties only to the extent that there were differences / discrepancies in the account balance of these parties vis- -vis the books of accounts of the assessee, and to the extent these differenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 6,10,317/- as bad debt written off, as compared to the balance appearing in the books of this party. Similarly, in the case of M/s. Eye Candy Works. the appellant has claimed on amount of ₹ 6,94,624/- as bad debt written off, whereas no balance was appearing in the books of the said party. Further, in the case of M/s. Vishesh Entertainment Ltd., the appellant had claimed bad debts written off at ₹ 9,49,619/-, whereas the balance as appearing in the books of the said party was only ₹ 9,07,195/-, which indicated that the appellant had claimed excess bad debts written off amounting to ₹ 42,424/-, in respect of this party. Similarly, in the case of M/s. UTV Production, the appellant had claimed bad debt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts and circumstances of the case. For example, from the account of M/s. Eye Candy Work, it is clear that the assessee has written off an amount of ₹ 7.79.463/-, but even after that if business as usual between the assessee and M/s. Eye Candy Work and subsequently. several payments have been received. Relevant details are given below :- F.Y.2006-07 Amt.(Rs.) Opening Balance 10,31,465 Add: Billed for the year 3,41,997 13,73,462 Less: Bad Debts w/o 7,79,643 Less: Received during the year 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount written off by the assessee is liable to be taxed u/s.41 (1) in the hands of other party. Therefore, proper reconciliation is necessary. The appellant has also relied upon the decision in the case of DClT vs. Oman International Bank SOAG (2006) 100 ITO 285 (Mum)(SB) and CBDT circular No.551 dated 23/1/1990 as also the decision of Hon'ble jurisdictional High Court in the case of ClT vs. Star Chemical (Bombay) Pvt. Ltd. However, as mentioned above, the AO as such has not rejected the claim of the appellant towards writing off of bad debts. What the AO has stated is that the amounts written off in the books of the appellant are not tallying with the books of the respective parties and the appellant could not reconcile the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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