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TMI Blog2017 (7) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... ircel-5(1), New Delhi Vs Kelly Services India Pvt. Ltd. [2013 (1) TMI 83 - ITAT DELHI] wherein the identical issue has been decided in favour of the assessee by observing what is material is the factors or the circumstances which cause loss if the loss occurred during the course of carrying on the business, it is incidental to it and, hence, allowable. Admittedly, in this case, the assessee suffered loss during the course of carrying on its business therefore, same is allowable - as the issue involved is having the similar facts as involved in the case of CIT vs. Shreyans Industries Limited, the order of the CIT (A) on this issue sustained - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... owance of ₹ 14,50,350/- as a bad debt is not acceptable. I. TDS recoverable from the client is not a bad debt. II. If the TDS is deducted and paid into the Govt. account then non - recovery of certificate is not a reason for not claiming the TDS credit due to any person. III. Assessee has not furnished any evidence that it has claimed and not allowed the credit of TDS due to the assessee. IV. On perusal of the details, it is noticed that the clients from whom TDS certificates were not received by the assessee includes multinational companies and other big corporate e.g. Adobe Software, GE Money, Hero Honda Tower, JP Morgen Services, Lucent Technologies. Oracle India etc. V. Assessee has not furnished any reason for not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical issue has been decided in favour of the assessee by observing in para 16 of the order dated 31.10.2012 which reads as under: "16. We have heard both the sides on the issue. Hon'ble Punjab & Haryana High Court in the case of CIT vs. Shreyans Industries Limited, cited supra, has granted the relief by holding as under:- "23. We have heard both the parties and carefully considered the rival submissions with reference to facts, evidence and material on record. It is a fact that the assessee had offered gross amount of interest including TDS of ₹ 2,04,259 to tax in the assessment year 1992-93. It is also a fact that the assessee was not allowed credit for the TDS of ₹ 2,04,259 for want of TDS Certificates. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .of the considered view that the payment made by the assessee on account of his-·not discharging the tax deduction obligations, and, therefore, the same could not be allowed as deduction on business income. As against the position that Hon'ble Supreme Court were dealing with, we are right now dealing with a situation in which neither the assessee got the money, lawfully due to him, as it was said to have been retained as tax deduction at source, nor did the assessee get any tax credit in computation of it's tax liability. The amounts represented by such tax deductions, which were unavailable for tax credits, clearly represented loss incurred by the assessee in the course of bonafide business activities. On these facts, as hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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