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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 ..... of the case in confirming the addition amounting to Rs. 14,50,350 on account of disallowance of irrecoverable debt (TDS certificates) written off on the premise that TDS recoverable from customer is not a bad debt and non receipt of TDS certificate cannot be reason for non claim of TDS credit due to appellant. Further, the Ld CIT(A) has also erred in concluding that deduction of irrecoverable TDS is not available due to noncompliance with provisions of Income tax Act, 1961." 3. Facts of the case in brief are that the assessee filed its return digitally on 23.10.2010 declaring an income of Rs. 3,50,70,596/- which was revised on 31.03.2012 at an income of Rs. 2,89,28,123/-, the same was processed u/s 143(1) of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO, rejected the claim of the assessee regarding allowance of written off TDS of Rs. 14,50,350/- and added back to the taxable income of the assessee. 5. Being aggrieved the assessee carried the matter to the ld. CIT(A) who agreed with the AO and confirmed the disallowance. 6. Now the assessee is in appeal. The ld. Counsel for the assessee at the very outset sated that this issue is squarely covered by the decision of the ITAT Delhi Bench 'D', New Delhi in ITA No. 5435/Del/2011 for the assessment year 200809 in the case of ACIT, Circel-5(1), New Delhi Vs Kelly Services India Pvt. Ltd., New Delhi (copy of the said order was furnished which is placed on record). 7. In his rival submissions the ld. DR supported the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture and character of 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. Judgment of Hon'ble Supreme Court in the case of Sutlej Cotton Mills Ltd. v. CIT supports the case of the assessee. We do not find any infirmity in the order of Ld. CIT(A). Same is upheld and this ground of appeal of the revenue is dismissed." The CIT (A) has also considered the decision of ITAT, 'G' Bench, Mumbai in the case of Addl. CIT , Range 7 (3), Mumbai vs. Yahoo Web Services P. Ltd. in ITA No.20042/Mum/2010 dated 28.01.2011 wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Indian Aluminium Co. Ltd. vs. CIT - 79 ITR 514 (SC), the issue under consideration was different than the issue before us in the present case. In that case, the principle business of the assessee company was manufacturing of aluminium ingots, sheets and other aluminium products. Assessee entered into an agreement with the company in Montreal, Canada and as per this agreement, there was an annual retainer-ship fee to be paid but there is no condition or stipulation that how the fee would be payable by the assessee without deduction of tax under the provisions of tax applicable at the relevant time. The assessee paid the total fee without deducting the tax and the Assessing Officer treated the assessee as being in def ..... X X X X Extracts X X X X X X X X Extracts X X X X
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