9911796707
TMI Blog2011 (6) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer to complete the assessment de novo. Such action of the CIT. Kol.-II was wholly bad, illegal, unjustified and uncalled for. (2) For that in view of the facts and circumstances the order passed by the Ld. CIT. Kol.-II u/s. 263 was bad, illegal, unjustified and liable to be quashed/cancelled. (3) For that in view of the facts and circumstances the Ld. CIT. Kol.-II was wholly unjustified in setting aside the assessment u/s. 263 and such action of the CIT-II was wholly bad, illegal and unjustified. 3. Brief facts of the case are that Ld. CIT examined the assessment records of the assessee pertaining to assessment year 2006-07 and noted that an amount of ₹ 50,00,000/- was debited towards provision for doubtful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transferred to liability of balance sheet under the head current liability and provisions . The assessee had relied on the decision of the Hon ble Apex Court in the case of Vijaya Bank vs. CIT [2010] 323 ITR 166(SC) for the methodology adopted by him. Thus, it was pointed out that the impugned amount had been actually written off in the profit and loss account and therefore, it was an allowable deduction in view of the amendment of Income Tax Act from 01.04.1989. Therefore, the provisions of Section 263 are not attracted. However, Ld. CIT pointed out that the details furnished by the assessee in Annexure A of the letter dated 06.10.2010 does not give true picture as to when and under what circumstances the assessee-company took the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2004-05 3,00,000.00 2. M/s. Hydromech Engg. PTE Ltd. 1966-67, 1997-98 1998-99 47,00,000.00 3. M/s. S.K. Agencies, Bangalore 2000-01 1,25,471.10 4. M/s. Ajit Auto Agencies 2003-04 2003-04 1,00,019.45 Total : 52,25,490.55 Ld. Counsel appearing on behalf of the assessee, with reference to facts noted above, submitted that since Section 154 proceedings were initiated and after considering assessee s submissions, no order was passed, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,76,63,989/- 1,24,55,468/- Less : Provision 1,76,63,989/- 1,24,55,468/- 0 0 Outstanding for a period of less than six months : 19,09,51,709/- 13,84,56,260/- 20,98,48.239/- 16,16,01,230/- Thus, to the extent, the debts were considered doubtful, the same were written off by actually writing off in profit and loss account and also in the books of account by crediting the sundry debtors on the asset side of balance sheet. This methodology was in conformity with the decision of Hon ble Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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