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TMI Blog2017 (2) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... t in question has been written off by the assessee in its accounts for the year under consideration and then decide the issue in dispute in accordance with law. The assessee shall be afforded sufficient opportunity of hearing. Accordingly, the ground of the appeal is allowed for statistical purpose. - ITA No. 1797/Del/2013 - - - Dated:- 18-11-2016 - SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Sh. Sandeep Sapra, Adv. For The Respondent : Sh. F.R. Meena, Sr.DR ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against order dated 27/12/2012 passed by learned Commissioner of Income-tax (Appeals)- XXVI, Laxmi Nagar, Delhi-92, for assessment year 2008-09 ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other. 2. The facts in brief of the case are that in the relevant assessment year, the assessee was having dealership of Bharat Petroleum Corporation Limited (BPCL) and was engaged in trading of petroleum products etc. The assessee filed return of income for the assessment year in consideration on 29/09/2008, declaring total income of ₹ 36,38,930/- the case of the assessee was selected for scrutiny and notice under section 143(2) of the Income-tax Act, 1961 (for short the Act ) was issued and complied with. In the assessment completed under section 143(3) of the Act on 10/12/2010, total income was assessed at ₹ 53 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, cheque got dishonoured in financial year corresponding to subsequent assessment year and thus assessee would be entitled for claim of bad debt in assessment year 2009-10. In view of the observations, the learned Assessing Officer disallowed the claim of bad debt of the assessee. 3.2 Before the learned Commissioner of Income-tax (Appeals), the assessee submitted that debt from the party was due from the month of February, 2007 and after making local enquiries that there was no expectation of recovering the debt, the assessee wrote off the debt in its books of accounts during the financial year 2007-08 and the debtor closes business activities and the whereabouts were not known at the time of writing off debt. Further, it was submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax (Appeals) on the issue in dispute might be sustained. 3.5 We have heard the rival submissions of the parties and perused the relevant material on record. The fact that the assessee supplied petroleum products worth ₹ 9,51,280/- to M/s. Poorti Rent Car and Logistics Private Limited, is not disputed. The fact that cheques issued by the said party were dishonoured is also not in dispute between the parties. The only dispute is whether the amount should be written off in the assessment year under consideration or in subsequent assessment year when the cheques were dishonoured. 3.6 For the purpose of deduction under section 36(1)(vii) the requirement is that the bad debt or part thereof should be written off as irrec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itten off in the year under consideration. In view of the above, we feel it appropriate to restore the matter to the file of the Assessing Officer, who is directed to ascertain from the books of accounts of the assessee, whether the bad debt in question has been written off by the assessee in its accounts for the year under consideration and then decide the issue in dispute in accordance with law. The assessee shall be afforded sufficient opportunity of hearing. Accordingly, the ground of the appeal is allowed for statistical purpose. 4. The remaining grounds of the appeal were not pressed by the learned Authorized Representative of the assessee and accordingly dismissed as infructuous. 5. In the result, appeal of the assessee is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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