9911796707
TMI Blog2021 (8) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... nd credited to Income / expense Salaries & allowances but could not be recovered. 1.2. The learned CIT [A] has erred in not deleting the Write off of amounts treated as income / credited to expense in earlier years and written off in the current as they are allowable under sections 28 and 37 of the Act. 2. The learned CIT [A] has erred in not clearly directing that the disallowances made under normal provisions are not includable to book profits/ income computed u/s 115JB of the Act -as they are not covered by Explanation to Section 115JB of the Act. 3. The interest charged u/s 234B is wrong. 4. That the above grounds are independent and without prejudice to each other." 2. Facts giving rise to the present appeal are that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ground No.1.1 to 1.2 raised by the assessee in this appeal are against the confirming the disallowance of Rs. 1,27,476/- made by the Assessing Officer. 6. Ld. Counsel for the assessee vehemently argued that the authorities below have failed to appreciate the facts in right prospective and had made disallowance without appreciating the facts in right prospective. He further reiterated the submissions as made in the written synopsis. He submitted that the employees who had left the employment of the assessee without giving notice for making payment in lieu of notice period. He submitted that the amount was credited to the salary account of the respective employees. Similarly, in the case of shortage of garments and uniform expenses also cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... readyreference. The following further documents were directed to be furnished on the last date of hearing on 20th July 2021. Regarding Shortage of Garments: Ledger Account of Sales Recovery from employees for the earlier financial year (2010-111 - to establish that they are credited to the Statement of Profit and Loss Account-which is marked as Page S-1 Please find also find enclosed: The Statement of Profit & Loss for the year ended on 31-3-2011 which is marked as Page S-2 The Grouping of Sales of each State which got credited to the Statement of Profit & Loss for the year ended in 31-3-2011 which is marked as Page S-3 It will be observed that the Sales Recovery from employees -on account garment shortage during FY 2010-11 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee were to be returned which the employees did not return; and thirdly, garments handed over to the such employees were not returned back, therefore, the assessee made relevant entry in the journal. He further contended that no accounting principles permit the claim of the assessee. 8. In re-joinder, Ld. Counsel for the assessee contended that the claim falls within the ambit of bad debt even the assessee is eligible to claim a business loss u/s 28 of the Act. He contended that the assessee company debited the accounts of the employees towards shortage of garments in the custody of the employees which was finally credited to the P&L A/c. Secondly, cost of uniform provided to the employees who have left service without continuing fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed the claim of the assessee. I, therefore, direct the Assessing Officer to delete the addition. However, in the case where the employees had left employment without paying mandatory notice pay, the assessee has not brought on record that what steps were taken to recover this amount to demonstrate that in fact these were recoverable from the employees. In the absence of such evidence, no interference is called for. Thus, Ground of appeal No.1 raised by the assessee is partly allowed. 11. Ground of appeal No.2 raised by the assessee reads as under:- 2. The learned CIT [A] has erred in not clearly directing that the disallowances made under normal provisions are not includable to book profits/ income computed u/s 115JB of the Act -as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which section 10 (other than the provisions contained in clause (38) thereof) or section 11 or section 12 apply; or (fa) the amount or amounts of expenditure relatable to income, being share of the assessee in the income of an association of persons or body of individuals, on which no income-tax is payable in accordance with the provisions of section 86; or (fb) the amount or amounts of expenditure relatable to income accruing or arising to an assessee, being a foreign company, from,- (A) the capital gains arising on transactions in securities; or (B) the interest, 76[dividend,] royalty or fees for technical services chargeable to tax at the rate or rates specified in Chapter XII, if the income-tax payable thereon in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
