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TMI Blog2019 (6) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... e that 100 properties were taken on rent by the assessee to carry out its business out of which 30 properties have been vacated but assessee claimed to have not got the refund of security deposit, the same is allowable revenue expenditure lost in the ordinary course of business. AO has not questioned the books of account maintained by the assessee. So, CIT (A) has erred in confirming the addition which is not sustainable in the eyes of law hence it is ordered to be deleted subject to verification by the AO. Consequently, Ground No.2 is determined in favour of the assessee. Addition on account of advance given by the assessee to M/s. Centrum Direct Ltd. and written off as bad debt u/s 37(1) - HELD THAT:- when assessee proved to have advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - ITA No.2626/Del./2015 - - - Dated:- 29-5-2019 - Vice President, Shri G.D. Agrawal And Shri Kuldip Singh, Judicial Member For the ASSESSEE : Shri Amit Gupta, Advocate For the REVENUE : Smt. Rinku Singh, Addl. CIT DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : Appellant, M/s. Onicra Credit Rating Agency of India Ltd. (hereinafter referred to as the assessee ) by filing the present appeal sought to set aside the impugned order dated 03.02.2015 passed by the Commissioner of Income-tax (Appeals)-7, New Delhi qua the assessment year 2009-10 on the grounds inter alia that :- 1. That on the facts as well as in law the Learned CIT (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s because they are booked as revenue. Declining the contentions raised by the assessee, AO reached the conclusion that unclaimed TDS of earlier years and security deposits given to electricity etc. is not a part of the income of the earlier years; the security deposit is an advance given which does not form part of the profit and loss account. Likewise, unclaimed TDS is not part of the profit and loss account. It is also not verifiable that the unclaimed TDS which the assessee has written off as bad debt has ever shown up as income and thereby disallowed the total amount claimed by the assessee under the head bad debts written off and thereby added to the income of the assessee. 3. Assessee carried the matter by way of an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in favour of the assessee for statistical purposes. GROUND NO.2 6. So far as confirming the addition of ₹ 2,97,785/- by the ld. CIT (A) on account of security deposit rent written off under section 37(1) of the Income-tax Act, 1961 (for short the Act ) is concerned, it is the case of the assessee that it has taken on rent over 100 properties in the different parts of the country out of which the company has vacated 30 properties during the year under assessment and no refund of security deposit of these 30 properties was made by the ownoer. We are of the considered view that when it is not in dispute that 100 properties were taken on rent by the assessee to carry out its business out of which 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition without deciding the issue in controversy. So, we are of the considered view that this issue also requires to be remanded back to the AO to decide afresh after examining the documents relied upon by the assessee. Consequently, Ground No.3 is determined in favour of the assessee for statistical purposes. GROUND NO.4 8. Ld. CIT (A) confirmed the addition of ₹ 75,309/- on account of disallowance of unrealized amount given for services to M/s. Easy Link on the ground that this debt does not form part of the previous year or earlier year. It is the case of the assessee that this unrecoverable advance is incidental to the business and deduction was alternatively admissible under section 37(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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