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TMI Blog2019 (8) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... debts u/s 36(2) - fixed deposit made with Sarvoday Co-operative Bank who was now under liquidation - HELD THAT:- CIT(A) has given specific finding that assessee has not demonstrated with relevant details that aforesaid deposit was made in the ordinary course of the business and the income earned from such deposit was shown in the preceding year in its total income. With the assistance of the Ld. Representative we have gone through the material on record and observed that assessee has not demonstrated with any supporting evidences that it had shown any income earned from such deposit in the preceding years. In order to facilitate to adjudicate the impugned issue on merit we consider it appropriate to restore this issue to the file of the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss income as shown by the assessee in the return of income. 2. The Assessing Officer and Ld.CIT(A), Baroda both have also erred in law in disallowing the claim of bad debts of ₹ 1,35,000/- written off by the assessee in the books of accounts during the year. 3. The Assessing Officer and Ld. CIT(A), Baroda both have erred in law in applying the decision of Hon ble ITAT in respect of assessee s own case for A.Y. 2009-10 because the facts of the current year A.Y. 2014-15 are different from that of A.Y. 2009-10 so far as Sec. 176(3A) of the I.T. Act was not referred by the assessee in A.Y. 2009-10 while the claim is made under that section in current A.Y. 2014-15. 4. The order of the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med the interest income of ₹ 9,88,259/- pertaining to the amount received from the borrower against its outstanding balance. In this regard, we have perused the provision of Sec. 176(3A) of the Act. The relevant part of this provision is reproduced as under:- Where any business is discontinued in any year, any sum received after the discontinuance shall be deemed to be the income of the recipient and charged to tax accordingly in the year of receipt, if such sum would have been included in the total income of the person who carried on the business has such sum been received before such discontinuance. 5. In view of the above provision of Sec. 176(3A) it is clear that the interest income on advances is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia was cancelled under Sec. 22 of the Banking Regulation Act, 1949 by the Reserve Bank of India on 25th October, 2015, therefore, the assessee was not entitled to claim bad debt. 7. The aggrieved assessee has filed appeal before the Ld. CIT(A). Ld. CIT(A) has dismissed the appeal of the assessee. We have heard the rival contention on this issue. The assessee had made investment in fixed deposit with Sarvoday Co-operative bank Ltd., Ahmedabad in the regular course of business. It is claimed that the income from the aforesaid fixed deposit placed with the bank had been offered as income regularly in the earlier year. Since the Sarvoday Co-operative was under liquidation and there was no probability of recovering ..... X X X X Extracts X X X X X X X X Extracts X X X X
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