9911796707
TMI Blog2015 (6) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... concising of the grounds of appeal. The main grounds as stated by the assessee are Ground Nos.2, 3 & 4 and the same read as under: "2. The Commissioner of Income-tax(Appeals) erred in confirming the disallowance of amount written off as irrecoverable amounting to Rs. 41,37,600/-. 3. The Commissioner of Income-tax(Appeals) erred in confirming the disallowance of export promotion expenses amounting to Rs. 21,00,000/-. 4. The Commissioner of Income-tax(Appeals) erred in confirming the disallowance of expenditure on computer software amounting to Rs. 80,000/-." 3. Briefly stated, the relevant facts are that the assessee is engaged in manufacturing of piston and piston assemblies. The assessee filed the return of income and revised the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CIT(A) which is evident from para 6.3 of the impugned order, that if the discounts are given in a particular year, they are required to be debited in the relevant year only. The relevant lines in this regard read as under: "If the discounts were given in a particular year, the discounts have to be debited in the relevant yar only. It is not the case of the appellant that the total invoice was offered as income and the balance to be recovered, if any, from the customer was written off as bad debts. The discounts are the amounts which are not offered to income. Hence, they do not qualify as bad debts. The appellant also could not produce when the discounts were given i.e before payments or whether the clients deducted and paid for wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f remanding the issue of claim of bad debts to the file of Assessing Officer for fresh examination. 9. Before us, on this issue, the ld. DR submitted that the debtors are Government undertakings and the failure of the assessee in furnishing the relevant details for demonstrating that the debts involved are merely discounts negotiated with Government undertakings is undisputed. Therefore, the claim of the assessee should not be allowed unless the nature of debts are established and conditions specified in relevant provisions of the Act are fulfilled. Judgment of the Hon'ble Madras High Court in the case of South India Surgicals Co. Ltd vs CIT 287 ITR 62, is relevant. 10. We heard both the parties on this issue and perused the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 22.5.2015. Further he mentioned that this issue may also be remanded to the file of the Assessing Officer for adjudication considering the lack of detailed discussion on this issue so as to prove that such amount constitutes reimbursement. The Assessing Officer did not allow the claim of the assessee primarily for want of details. The same is evident from the contents of para 6. The CIT(A) also confirmed the same. It is the opinion of the CIT(A) that the facts placed before the Assessing Officer and the CIT(A) are different therefore, he proceeded to confirm the addition. 12. After hearing both the parties and perusing the orders of the Revenue, we find it relevant to remand this issue also to the file of the Assessing Officer for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the said software relates to crash recovery software and the same falls in revenue field. On the other hand, the CIT(A) has held that the same falls in capital field again without passing a speaking order on the issue. 14. On hearing both the parties and going through the orders of the Assessing Officer and the CIT(A), we find that there is no relevant facts on the record to adjudicate if the said expenditure falls in revenue or capital field. So, all the parameters relating to the nature of capital asset should be brought on record by the Assessing Officer. It is not clear as to how the 'crash recovery software' gives enduring benefits and is capable of yielding income on stand alone basis. It is pertinent to note that Hon'ble Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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