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TMI Blog2022 (9) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... ly recognized. CIT(A) in paragraph No. 2.3 of his impugned order has clearly stated that these debts having been written off in the books of account of the assessee-company in the year under consideration and having already been credited as income in the preceding year(s), the same are allowable as expenditure under Section 36(1)(vii) - we find no justifiable reason to interfere with the impugned order of the learned CIT(A) giving relief to the assessee on this issue and upholding the same, we dismiss Ground No.1 of the Revenue s appeal. Disallowance of Attimari Coolie expenses - entire amount of Attimari Coolie expenses claimed by the assessee was disallowed by the Assessing Officer for want of supporting evidence without disputing or doubting that the said expenses were fully and exclusively incurred by the assessee for the purpose of business - CIT-A restricted addition @ 25% of total expenses - HELD THAT:- we find no infirmity in the order of the learned CIT(A) on this issue restricting the same to 25% which is quite fair and reasonable. Moreover, the learned CIT(A) has followed the order of his predecessor on a similar issue in assessee s case for AY 2009-10 where a si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company Amount Reason for rejection of bill IPCL, Baroda 4,93,279 The said amount is deducted from the bill not passed for payment. The said amount is not credited by debtor co. in its books of accounts IOCL 9,50,000 Amount deducted from the bill as free material was issued and the same was adjusted against the Bill. The said amount is not credited by debtor co. in its books of accounts. Hindalco Industries Limited 12,64,272 Amount deducted for wastage of plates provided by the debtor company and the excess claim disallow. Amount not credited by debtor co. in its books of account. Afcons Infrastructure Limited 2,97,979 Consumable items supplied free and amount adjusted against bills raised. No amount has been credited by debtor in the books of accounts. Larsen Toubro Limited 6,50,831 Bill raised by assessee was reduced as the claim was e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount should be written off as recoverable in the accounts of assessee for the previous year and secondly, the amount, which is sought to be written off should have be taken into account as income of the assessee in the previous year relevant to the assessment year or in the earlier previous years. In the case of appellant, while explaining each and every debt, it has shown that the debts have been written off in its books of account during the year and were shown as income in the earlier year/s. The objections raised by AO that debtor companies have not claimed these amounts in their books of account or they have rejected the claims of appellant or TDS is not made on these amounts or these amounts have been claimed excessively or otherwise, do not make any relevance in the light of decision of Hon'ble Supreme Court in the aforesaid case. Since these debts have been written off in the books of appellant in the year under consideration and have already been credited as income in the preceding year/s, same are allowable as expenditure u/s. 36(1)(vii) of the Act. 2.3.1 However, during the appellate proceedings, appellant was asked to furnish the party wise details of thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of bad debts. He contended that this matter may, therefore, be sent back to the Assessing Officer for verifying as to whether this condition was duly satisfied by the assessee or not. 7. The learned Counsel for the assessee, on the other hand, submitted that bills were duly raised by the assessee on the concerned debtors and when the amounts of the said bills became irrecoverable for the reasons clearly stated before the Assessing Officer, the same were written off as bad debts in the books of account and deduction was claimed. He contended that the fact that these amounts were reflected as sundry debtors in the books of account of the assessee was sufficient to show that the corresponding bills were raised and accounted for in the earlier years. 8. We have considered the rival submissions and also perused the relevant material available on record. The only contention raised by the learned DR in support of the Revenue s case on this issue is that one of the conditions for allowing claim of the assessee for bad debt written off was not satisfied inasmuch as the fact that the amount of bad debts written off having already been offered by the assessee-company as its inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. The disallowance of Rs.20,95,705/- made by the Assessing Officer on account of Attimari Coolie expenses was challenged by the assessee in the appeal filed before the learned CIT(A) and after considering the submissions made by the assessee as well as the material available on record, the learned CIT(A) restricted the disallowance made by the Assessing Officer on this issue to the extent of 25% for the following reasons given in paragraph No. 3.2 of his impugned order:- 3.2 I have considered the facts of the case and submissions of appellant. Since my predecessor has already dealt with this issue on identical facts in the preceding year in the case of appellant only and restricted the disallowance to 25% of total expenses, respectfully following the same, I also restrict the disallowance to 25% of total expenses which works out to Rs.5,23,926/-. AO is, therefore, directed to disallow the expenses of Rs.5,23,926/- against the disallowance of Rs.20,95,705/- made by him. This ground is partly allowed. 12. We have heard the arguments of both the sides on this issue and also perused the relevant material available on record. It is observed that the entire amount of Att ..... X X X X Extracts X X X X X X X X Extracts X X X X
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