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TMI Blog2018 (6) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... essee succeeds on this addition Write off of sundry balance recoverable from ‘Akash Overseas Company’ - Held that:- There is no sales made to said party by assessee. Hence,it could not be shown by assessee that the said amount constituted income which was included while computing taxable income of the assessee. Thus,based on material on record,the claim of the assessee cannot be allowed within the parameters of Section 36(1)(vii) of the 1961 Act and hence claim of the assessee is rejected Write off of sundry balances to M/s Ganesh Stone Company - Held that:- It is for the assessee to have brought on record reasons as to why large receipts post sales cannot be appropriated towards sales. No such evidences are brought on record and this is second round of litigation. Under these circumstances there is no valid justification for allowing this amount of ₹ 93862. 80 as write off of sundry balances as no justification/ business exigency is shown. In the absence of proper explanation/evidences on record,the assessee claim cannot be allowed. Write off with respect to ‘Pacific Marbles Private Ltd.’ it is shown vide ledger account and sales invoices that sales have been made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into account in computation of income of the earlier years etc vide common order dated 04-01-2012 passed by tribunal in ITA no. 5604/Mum/2010 and 4416/Mum/2010 ,wherein tribunal held as under:- 2. 2 We have perused the records and considered the rival contentions carefully. The dispute is regarding disallowance of claim of deduction of ₹ 2,57,379/- on account of sundry balance written off and disallowance of traveling expenses of ₹ 2,23,038/-. The AO disallowed the claims on the ground that no details/justification in support of the above claims were given. CIT(A) agreed with the finding of the AO. However,it is found from the perusal of the paper book that the assessee had filed details of sundry balance written off and details of traveling expenses which are available at pages 78 and 79 respectively of the paper book. But the details only give the name of the party,amount,date and no further details as to whether these were taken into account in computation of income of earlier years etc. is not available. Similarly,in respect of traveling expenses,the details given are only the date wise payments made to Deep Tours Travels. The relevance of these expenses to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w namely AO and learned CIT(A) . It is stated before the Bench that the said paper book do not carry any additional evidence filed for the first time before the tribunal. The said paper book carried tax audit report (PB/page 1-7),Balance Sheet and Profit and Loss account with schedules(Pb/page 8-20) ,Ledger account of Sundry Balances written off (Page 21/pb),Ledger account of M/s Ganesh Stone Pune from 01. 04. 2001 to 31. 03. 2006 (Page 22-23/pb),copy of ledger account of Aakash Overseas Company from 01. 04. 2001 to 31. 03. 2006 (page 24-25/pb) and ledger account of Pacific Marbles Private Ltd. from 01. 04. 2005 to 31. 03. 2006 (page 26/pb). It also carried three invoices dated 08-06-2003,23-08-2003 and 24-09-2003 respectively issued by assessee in favour of Ganesh Stone Pune for ₹ 62,543/- ,Rs. 4,21,000/- and ₹ 2,20,407/- (page 27-29/pb) respectively ,one invoice dated 09-09-2005 issued by assessee in favour of Pacific Overseas Private Limited for ₹ 3,46,000/- ( pb/30 ) ,one invoice issued by assessee in favour of Tropicana Property dated 01. 04. 2005 of ₹ 1,27,222/- which is placed in paper book at page no. 31 . The ledger account of the sundry Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 967/- recoverable from Tropicana Properties keeping in view provisions of Section 36(1)(vii) of the 1961 Act. The assessee succeeds on this addition. We order accordingly. There is a sundry balance write off of minor /fractional amount of in- significant value of ₹ 0. 59 being written of on account of short/excess from Vanila Deposit . Keeping in view that amount involved is insignificant and is merely short/excess being fractional amount of paise fifty nine only written off,the same is allowed. The assessee succeeds on this addition. We order accordingly. With respect to write off of sundry balance to the tune of ₹ 6261/- recoverable from Akash Overseas Company ,wherein ledger account is placed in paper book from 01. 04. 2001 to 31. 03. 2006,perusal of the ledger account reveals large number of debit and credit entries of amounts paid and received . There is no sales made to said party by assessee. Hence,it could not be shown by assessee that the said amount constituted income which was included while computing taxable income of the assessee. Thus,based on material on record,the claim of the assessee cannot be allowed within the parameters of Section 36(1)(vii ..... X X X X Extracts X X X X X X X X Extracts X X X X
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