9911796707
TMI Blog2023 (7) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... After revival of the company, a review of the investments, current assets and current liabilities was made and necessary accounting entries were affected in the books of accounts in this year in order to reflect the correct balances. It could thus be seen that it was case of restatement of assets and liabilities at correct value in the absence of information forthcoming from official liquidator. No real income accrued to the assessee. Upon perusal of financial statements, it could be seen that the assessee has not earned any income from business operations but the credit to Profit Loss Account merely constitutes similar write-backs etc. Therefore, the disallowance as made by lower authorities could not be upheld. AO is directed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, hence addition on this account requires to be deleted. As is evident, the assessee is aggrieved by disallowance of investments written-off during the year for Rs. 165.81 Lacs, advances / debtors written-off for Rs. 98.08 Lacs and cash / bank balances written-off for Rs. 2.95 Lacs. 2. The Ld. AR advanced arguments and submitted that it was a case of restatement of financial statements and no real income accrued to the assessee. The Ld. Sr. DR, on the other hand, supported the assessment framed by Ld. AO. Having heard rival submissions and after perusal of case records, our adjudication would be as under. Proceedings before lower authorities 3.1 The erstwhile assessee M/s Success Investments Ltd. being resident corporate a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale proceeds were also appropriated by the Official Liquidator, the investments which relate to the investment activities and which are non-existent were written-off and are therefore, to be treated as business expenses / loss only. Regarding write-off of debtors, bank balances and write-back of creditors, it was further submitted that as per the order of Madras High Court, the balances available in the bank accounts were also transferred to the official Liquidator's account of MCC Finance Ltd some time in 2004. However, no details were made available. Therefore, the bank balances as appearing in the books were non-existent and accordingly, written-off. After review, various outstanding debtors and creditors since 1999 were also wri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sold the investments held by the assessee and the amounts were appropriated by the Official Liquidator but no details were made available to the assessee. Consequently, it was not possible to update the accounts of the company. The balances as on 31.03.1999 were carried forward from year-to-year till 2013. After revival of the company, a review of the investments, current assets and current liabilities was made and necessary accounting entries were affected in the books of accounts in this year in order to reflect the correct balances. It could thus be seen that it was case of restatement of assets and liabilities at correct value in the absence of information forthcoming from official liquidator. No real income accrued to the assessee. Up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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