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TMI Blog2022 (6) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... apital Ltd., on the assets transferred during the earlier years. In case, the assessee has not claimed this amount as deduction, the same can be disallowed u/s.43B of the Act. This can be verified by the AO. Accordingly both the disallowances u/.43B in regard to this common issue is remanded back to the file of the AO for verification. The appeal of the assessee is allowed for statistical purposes. Disallowance of bad debts written off - assessee contended that entire details including the list of bad debts were given by the assessee during assessment proceedings in regard to these bad debts. He argued that when the receivables were transferred and reflected in the books of assessee, it could not have been written off and claimed by In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) erred in disallowing bank interest Rs. 1.31,60,648/- being Bank interest charged and debited to Appellant's CC account, u/s 43B. 3. The Commissioner of Incometax (Appeals) ought to have appreciated that the amount of interest debited to the CC account, which is a running account, represents interest recovered by the Bank and hence disallowance u/s 43B is not warranted. 4. The Commissioner of Incometax (Appeals) erred in confirming the addition of Rs. 63,19,927 /- being liability to service tax taken over from ICCFL. 5. The Commissioner of Incometax (Appeals) ought to have appreciated that the Assessee had not collected any amount towards service tax nor has the Appellant claimed the amount as a deduction. Any a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld.counsel for the assessee before us stated during the assessment year 2006-07, India Cements Capital Ltd., transferred all the assets and liabilities of its hire purchase and leasing business to the present assessee. He stated the fact that the agreement for transfer of assets was entered into on 28.06.2006 but the transfer was made effective from 01.10.2005. He argued that there was earlier a dispute regarding the quantum of assets and liabilities transfer and the Department contested only part of the liabilities, which were transferred from India Cements Capital Ltd., to the assessee. He stated that now the Tribunal in the case of India Cements Capital Ltd., supra, held that all the assets and liabilities as appearing in the books of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to ld.counsel for the assessee by the Bench that these facts are not coming out of the orders of lower authorities i.e., the order of AO and CIT(A), the ld.counsel stated that the Tribunal in ITA No.1932/Chny/2018 order dated 20.05.2022 in the case of India Cements Capital Ltd., has noted these facts, which can be verified. Even this claim on the liability of bank interest of Rs.1,31,60,648/- and service tax of Rs.63,19,927/-, the AO can verify the same and accordingly the matter can be set aside. 5. The ld. Senior DR has not objected to remand the matter back to the file of the AO for verification of fact stated by assessee s counsel. 6. After hearing both the sides and going through facts, we direct the AO to verify whether the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g liabilities have not been given by the assessee and further the details whether the debts had not been claimed by India Cements Capital Ltd., or whether the debts taken over have been squared off in the books of the assessee are not provided. The ld.counsel stated that these details could not be provided as the CIT(A) decided ex-parte without providing opportunity to the assessee. On query from the Bench, the ld.counsel stated that out of the business receivables transferred by India Cement Capital Ltd., the assessee written off a sum of Rs.13,14,72,102/- as bad debts and this was disallowed on the ground that the same was claimed by India Cements Capital Ltd., as their bad debts. The assessee contended that entire details including the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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