9911796707
TMI Blog2023 (10) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... Deposit income tax, refund and profit on sale of assets etc., the Assessee had preferred an Appeal and to the extent CIT(A) accepted the submissions of the Assessee, the Revenue had preferred an Appeal. HELD THAT:- As regard the credit to profit and loss account on account of liabilities written back, the details of the liabilities written back were made available to CIT(A) as well as ITAT. Both, on facts, and having considered those details, have come to conclusion accepting the Assessee s contention that those liabilities belong to earlier years and are directly relatable to the regular business operations of the Assessee and since these liabilities were no longer payable to business creditors should be allowed to be written back in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal transactions made on account of import of paper, aluminium foil, K Film, purchase return of imported paper, etc. 3. The Assessing Officer ( AO ) passed an Assessment Order under Section 143(3) after receipt of TPO s order. In addition to the transfer and pricing adjustment, the Assessing Officer made other additions. Aggrieved by the Assessment Order passed by the AO, the Assessee filed an Appeal before the Commissioner of Income Tax (Appeals) [ CIT (A)]. The Appeal was allowed by the CIT(A) by an order dated 25th May 2014. Aggrieved by the said, the Revenue preferred an Appeal before the Income Tax Appellate Tribunal ( ITAT ) which dismissed the Appeal of Revenue. The Assessee had also preferred an Appeal against certain proportions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titute the operating profits and hence were excluded. These six items are: Particulars Amount (Rs.) Interest on FD 95,63,024/- Interest on IT refund 4,05,651/- Liability written back 6,15,59,011/- Profit on sale of asset 1,43,28,497/- Doubtful debts written back 1,48,74,096/- Miscellaneous income 1,15,12,640/- Total 11,22,43,919/- 6. Thus, the amount of Rs. 11,22,43,919/- was excluded from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at those liabilities belong to earlier years and are directly relatable to the regular business operations of the Assessee and since these liabilities were no longer payable to business creditors should be allowed to be written back in the Assessment Year under consideration and the same was rightly offered to tax as business income under Section 41(1) of the Act. Therefore, on facts it was accepted that these liabilities written back were arising out of normal business operations and hence form part of operating income of the Assessee. 9. As regards the writing back of doubtful debts amounting to Rs. 1,48,74,096/-, the CIT(A) came to a factual finding which has also been accepted by the ITAT that those doubtful debts were inextricably l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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