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TMI Blog2021 (8) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. Therefore, the authorities below ought to have allowed 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. Disallowances made under normal provisions are not includable to book profits/ income computed u/s 115JB - HELD THAT:- In agreement with the Ld. Counsel for the assessee that as per the explanation 2 of section 115JB of the Act, the amount disallowed could not have been added for the purpose of section 115JB of the Act. We therefore, direct the Assessing Officer to compute book profits as per explanation 2 of section 115JB of the Act. Thus, Ground of appeal No.2 raised by the assessee is allowed. - ITA No.3796/Del/2017 - - - Dated:- 11-8-2021 - Shri Kul Bharat, Judicial Member For the Appellant : Sh. M.P.Rastogi, Adv. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by, Ld.CIT(A) deleted the addition made on account of disallowance of commission of ₹ 13,97,196/-, deleted the addition ₹ 12,79,430/- made on account of non-deduction of tax. However, Ld.CIT(A) confirmed the addition of ₹ 1,27,476/- made on account of disallowance of claim of bad debt written off. 4. Aggrieved against this, the assessee preferred appeal before this Tribunal. 5. Ground No.1.1 to 1.2 raised by the assessee in this appeal are against the confirming the disallowance of ₹ 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 credited to respective heads, hence stood r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arding recovery on account of uniforms: Ledger Account of Uniforms for the earlier finance year (2010-11) to establish that the recoveries got credited to the expense Statement of Profit and Loss Account-which is marked as Page S-4 The Grouping of Personnel Expenses which got debited to the Statement of Profit Loss for the year ended on 31-3-2011 which is marked as Page S-5 The Sub-grouping of Salaries, Wages and Bonus groups in Personnel Expenditure which got debited to the Statement of Profit Loss for the year ended on 31-3-2011 which is marked as Page S-6 Please find enclosed Salary vouchers for the 12 months of Financial year 2010-11 to show how the personnel expenses are accounted for Hope that your kind self will find the above in order Therefore it is once again prayed that the disallowance of ₹ 1,27,476 ma kindly be deleted. 7. Ld. Sr. DR opposed these submissions and submitted that the authorities below were justified in disallowing the claim of the assessee. He submitted that the claim of the assessee does not fall within the ambit of bad debts. He submitted that the assessee apparently has claimed bad debt on three counts: firstl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the authorities below ought to have allowed 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 they are not covered by Explanation to Section 115JB of the Act. 12. Ld. Counsel for the assessee submitted that Ld.CIT(A failed to give clear direction to the Assessing Officer to exclude the disallowance made under normal provisions for computing the book profits/income u/s 115JB of the Act. Ld. Counsel for the assessee further submitted that Ld.CIT(A) ought to have given a clear direction fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to in clause (xvii) of section 47; or (fd) the amount or amounts of expenditure relatable to income by way of royalty in respect of patent chargeable to tax under section 115BBF; or (g) the amount of depreciation, (h) the amount of deferred tax and the provision therefor, (i) the amount or amounts set aside as provision for diminution in the value of any asset, (j) the amount standing in revaluation reserve relating to revalued asset on the retirement or disposal of such asset, (k) the amount of gain on transfer of units referred to in clause (xvii) of section 47 computed by taking into account the cost of the shares exchanged with units referred to in the said clause or the carrying amount of the shares at the time of exchange where such shares are carried at a value other than the cost through statement of profit and loss, as the case may be. 15. I, therefore, direct the Assessing Officer to compute book profits as per explanation 2 of section 115JB of the Act. Thus, Ground of appeal No.2 raised by the assessee is allowed. 16. Ground No.3 raised by the assessee is against the charging of interest u/s 234B of the Act. No submission as made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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