9911796707
TMI Blog2012 (10) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. We heard Shri A.S. Bindhu, the ld.DR and Shri P.K. Sasidharan, the ld.representative for the taxpayer. 4. The only contention of the ld.DR before this Tribunal is that the assessment proceedings for the assessment year 1999-2000 in respect of the very same issue is pending before the High Court. Therefore, the order of the High Court has to be followed. 5. We find that the High Court by judgment dated 02-09-2011 has set aside the order of this Tribunal for the assessment year 1999-2000 and directed the Tribunal to reconsider the case on merit. Consequently, this Tribunal by an order dated 28-09-2012 examined the issue and found that the required details were not available on record. Accordingly the issue was remanded back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first issue relates to bad debt. 7. We heard the ld.representative for the taxpayer and the ld.DR. Shri PK Sasidharan, the ld.representative for the taxpayer submitted that the taxpayer has written off the amount due from the sister concern, M/s Asian Shellfish Growers Pvt Ltd. According to the ld.representative, since there was no chance of recovery of this amount it was written off. According to the ld.representative, it is incidental to the business activity. Therefore, the claim should be allowed u/s 37 of the Act. According to the ld.representative, the taxpayer advanced the funds in the regular course of business for ensuring the availability of raw material at competitive rate. The assessing officer disallowed the claim of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance made to a sister concern for development of acqua farm. The money advanced to the sister concern may be repaid either in the form of cash or in the form of raw material. It cannot be said that the money was advanced in the course of the business activity. As rightly submitted by the ld.DR, advancing of fund is not the business activity of the taxpayer. For the purpose of allowing a bad debt, it has to necessarily satisfy the condition provided in section 36(2) of the Act. Since admittedly, the conditions provided in section 36(2) are not satisfied, this Tribunal is of the considered opinion that the Commissioner of Income-tax(A) has rightly confirmed the order of the assessing officer and there is no reason to interfere with the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing officer. 13. We have considered the rival submissions and also perused the material available on record. In view of section 43B, irrespective of the year of liability, the payment has to be allowed towards provident fund and ESI in the year in which it was actually paid. In the case before us, the taxpayer has paid ESI and provident fund contribution for the contract labourers. The taxpayer claims that it is the statutory liability of the taxpayer to pay the contribution. When it is the statutory liability it is not known how it could recover the amount from the contract labourer. If the taxpayer claims that the amount was paid on behalf of the contract labourers then the question of recovery of the amount may be considered. In thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 277 15. We heard the ld.representative for the taxpayer and the ld.DR. The Commissioner of Income-tax(A) confirmed the order of the assessing officer in the absence of any details. The taxpayer could not file any details before this Tribunal also. For the purpose of allowing the claim as bad debt, the taxpayer has to necessarily satisfy the conditions provided in section 36(2) of the Act. In the absence of any material to show that the taxpayer has satisfied the conditions provided u/s 36(2) of the Act, this Tribunal is of the consideration opinion that the claim of the taxpayer for bad debts cannot be allowed. Accordingly, the order of the Commissioner of Income-tax(A) is confirmed. 16. The next ground of appeal is with regard to cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
