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TMI Blog2022 (4) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been written off as non recoverable have duly been submitted by the assessee before the authorities below. We are of the considered view that assessee is entitled to the claim of bad debts in terms of section 36(1)(vii) read with section 36(2) of the Act. Moreover, the case of the assessee is squarely covered by the decision of the Apex Court in the case of TRF Ltd. [ 2010 (2) TMI 211 - SUPREME COURT] wherein the Apex Court has held that mere claim of bad debts would be suffice and the bad debts ought to be allowed in terms of section 36(1)(vii) of the Act. Accordingly, we set aside the order of Ld. CIT(A) on this issue and direct the AO to allow the claim of bad debts to the assessee. Ground No.1 is allowed. Addition on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of justice if a sum of ₹ 1,00,000/- is disallowed out of these expenses. Accordingly, we modify the order of Ld. CIT(A) and direct the AO to add only ₹ 1,00,000/-. Ground No.3 is partly allowed - ITA No.635/M/2019 (Assessment Year: 2006-07) - - - Dated:- 24-1-2022 - SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER Assessee by : Shri Ketan Ved, A.R. Revenue by : Shri Mahendra Ahuja, Sr. Ar. CIT ORDER Per Rajesh Kumar, Accountant Member: The present appeal has been preferred by the assessee against the order dated 24.07.2014 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2006-07. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore prayed that the claim of the assessee may be allowed. 6. The Ld. D.R., on the other hand, relied on the order of authorities below. 7. After hearing both the parties and perusing the material on record, we find that the assessee has made a claim of bad debts in the financial statements/books of accounts the details whereof are available in the paper book at page No.52. The assessee has also furnished the invoices raised in respect of which the bad debts were written off at page No.53 to 58, 63 to 77, 85 to 108 and 159 to 163 with journal entries passed for effecting those entries. We find that the authorities below have observed that amount claimed as bad debts were not correlated to the income of the earlier year which is w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,69,375/- on which tax at source was deducted by various parties as per department s record and the assessee was asked to provide details in relation thereto as to in which year corresponding income was offered to tax. The assessee filed the details reconciling the income to the tune of which have been offered to tax however balance information pertaining to ₹ 58,060/- could not be provided due to lack of information being made available and thus only 0.06% of the total reconciliation was treated as unaccounted receipt. The ld CIT(A) also confirmed the same. 10. We find that similar issue has been decided by the coordinate Bench of the Tribunal in favour of the assessee in assessee s own case in ITA No.3017/M/2016 A.Y. 2011-12 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd any infirmity in the order of the learned Commissioner (Appeals) on this issue. Ground raised is dismissed. 11. Since the facts of the issue before us are materially same , we, therefore, respectfully following the decision of the coordinate Bench of the Tribunal, set aside the order of Ld. CIT(A) and direct the AO to delete the disallowance. Ground No.2 is allowed. 12. The issue raised in ground No.3 is against the part confirmation of disallowance of ₹ 3,09,631/- being 10% of ₹ 30,96,315/- under various heads. The detail whereof is given as under: Subscription 2,33,970 Books, periodicals and CD s 29,619 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in appeal before us. 15. After hearing both the parties and perusing the material on record, we note that the assessee has attached sample bills from page No.141 to 152 in respect of subscription expenses and printing and copying expenses. Besides the assessee has also filed the ledger account of miscellaneous expenses along with sample bills at page No.3 to 8. We note that the disallowance made by the authorities below is purely on adhoc basis and is on the higher side. We note that no such disallowance was made either in the subsequent year or in the earlier years. In our opinion, it would meet the ends of justice if a sum of ₹ 1,00,000/- is disallowed out of these expenses. Accordingly, we modify the order of Ld. CIT(A) an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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