9911796707
TMI Blog2018 (12) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... ecame imminent because the landlord declined to refund the security deposit. The write off has to be considered in the light of provisions of section 28 r.w..s 37 of the Act. We, accordingly, set aside the findings of the CIT(A) and direct the AO to delete the disallowance - Decided in favour of assessee - ITA No. 4234/DEL/2015 - - - Dated:- 12-7-2018 - Shri N.K. Billaiya, Accountant Member, And Shri Kuldip Singh, Judicial Member For the Assessee : Shri K.V.S.R Krishna, CA For the Revenue : Shri Amit Jain, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] - I, Noida dated 29.01.2015 pertaining to A.Y 2009-10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o such fire. After fire, the premises were not in a usable position as the total infrastructure was destroyed and also all the furniture, computer were destroyed. For continuity of the work of the foreign clients and the company, the assessee started the work in the new premises within the period of 4 days. As the company was not utilizing the premises due to the fire and there was a dispute between the landlord and assessee company regarding the payment of rent. There was advance rent given to landlord could not be recovered from the landlord due to the dispute. As the company has given the two month advance rent to the owner of the premises under the terms of the rental agreement, it was a advance rent which was adjusted against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have given careful consideration to the orders of the authorities below. No doubt, the assessee claimed write off as bed debt but it is equally true that the assessee did explain the sequence of events which prompted it for the said write off. There is no denying that the assessee does not fulfil the conditions mandated in section 36(2) r.w.s 36(1)(vii) of the Act. It is equally true that the loss of security deposit is business loss in the revenue field because the said security deposit was given in the ordinary course of business of the assessee and since the assessee had to shift the business premises on the wake of the fire, the write off became imminent because the landlord declined to refund the security deposit. In our considered opi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
