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TMI Blog2023 (1) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee. We find from the perusal of the profit and loss account for the year ended 31/03/2014, on page 15 of the paper book, that the amount of bad debts of Rs.4 lakh was received by the assessee and the same was declared as income in the subsequent assessment year. Thus, once the assessee has offered the income to tax in the subsequent assessment year, we find no basis in upholding the disallowance made by the lower authorities. Accordingly, we direct the AO to delete the addition - As a result, grounds no.3 (b) and 3(c) raised in assessee s appeal are allowed. Addition on account of bad debts claimed by the assessee - CIT(A) dismissed assessee s appeal by observing that the claim has no legs to stand upon, thus the disallowance is confirmed - assessee submitted that during the year the assessee had written off the amount due from the firm from the year 1994 95 AND that in the said firm 3 brothers and their mother was partner, which may have stopped doing the business - HELD THAT:- We find that the learned CIT(A) provided no reasons for coming to the aforesaid conclusion. Further, there is no basis whatsoever provided in the order dismissing the appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by his Chartered Accountant about the dismissal of quantum appeal by the learned CIT(A) and till that date, he was not aware of the impugned order. Only thereafter upon advice from the Chartered Accountant, all the necessary papers were collected and the present appeal was filed. The assessee also submitted that he was suffering from cardiac ailments and other cardiovascular diseases and in November 2019 a coronary angioplasty was performed. The assessee has filed the medical certificate in support of its aforesaid submission. Accordingly, in view of aforesaid submissions, the assessee has prayed for condonation of delay in filing the present appeal. 3. On the other hand, the learned Departmental Representative ( learned DR ) vehemently opposed the condonation of delay in filing the appeal. 4. Having considered the submissions of both sides and perused the application seeking condonation of delay along with the affidavit filed by the assessee, we find that assessee is an individual who is about 69 years old. Further, it is the claim of the assessee that his regular Chartered Accountant who was handling his Income Tax matters expired during the pendency of the appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... short] in disallowing an amount of Rs.6.82,855/- claimed by the Assessee as bad debts/ business loss. 3.1 While doing so, the Ld. CIT(A) failed to appreciate that: (a) The said amounts were rightly claimed as bad debts/business loss by the Assessee; (b) The disallowance by the Ld. AO of the amount of Rs.4,00,000/- claimed as bad debts/business loss is not in accordance with law and in any case the same was recovered in the next year and was offered to tax in that year which fact is undisputed; (c) Disallowing the very same amount of Rs. 4,00,000/- amounted to double taxation which is impermissible under the Act. (d) As far as the amount of Rs.2,82,855/- is concerned the same has been disallowed on frivolous grounds on mere assumptions and presumptions. based on extraneous and irrelevant considerations while ignoring the relevant and material considerations; In the facts and circumstances of the case and in law, the action of the Ld. AO as affirmed by the Ld. CIT(A) deserves to be reversed and it is prayed accordingly. 4. In the facts and circumstances of the case and in law the disallowance made by the Ld. AO and as confirmed by the Ld. CIT(A) deserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer authorities. 10. We have heard the rival submissions and perused the material available on record. We find that during the assessment proceedings, in response to the query of the AO, the assessee submitted that Rs.4 lakh given as a loan was recovered in the subsequent assessment year and was also offered for taxation. However, the lower authorities despite the aforesaid fact proceeded to disallow the claim of bad debts and made the addition to the total income of the assessee. We find from the perusal of the profit and loss account for the year ended 31/03/2014, on page 15 of the paper book, that the amount of bad debts of Rs.4 lakh was received by the assessee and the same was declared as income in the subsequent assessment year. Thus, once the assessee has offered the income to tax in the subsequent assessment year, we find no basis in upholding the disallowance made by the lower authorities. Accordingly, we direct the AO to delete the addition of Rs.4 lakh. As a result, grounds no.3 (b) and 3(c) raised in assessee s appeal are allowed. 11. The issue arising in ground no. 3.1(d), raised in assessee s appeal, is pertaining to the addition of Rs.2,82,855 on account of bad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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