ACIT Vs M.K. Agrotech Pvt. Ltd. (ITAT Bangalore)
Per A. Mohan Alankamony, Accountant Member
These two appeals preferred – (i) by the assessee and (ii) another by the Revenue– are directed against the order of the CIT (A), Mysore, for the assessment year 2005-06.
ITA NO.401 (By the assessee):
2. The assessee company has raised six grounds, out of which, ground Nos: 1, 2 and 6 are general and not specific and, therefore, do not survive for adjudication. The remaining three effective grounds are as under:
(1) sustaining of disallowance of bad debts to the tune of Rs.310861/-;
(2) confirming the disallowance of Rs.2731483/- being the payments made through uncrossed DDs; &
(3) confirming the disallowance of Rs. 768210/- being freight payments made in violation of s.40A (3) of the Act.
ITA NO.443 (By the Revenue):
3. Similarly, the Revenue has raised nine grounds, out of which, ground Nos: 1 and 9 are general and not specific and, thus not considered for adjudication. In the remaining seven grounds, the essence and crux of the issues can, at best, be reformulated, in a concise manner, as under:
(i) the deletion of addition of Rs.30. 78 lakhs being bad debts in respect of debtor V.S.Ganesh Babu; &
(ii) deletion of addition of Rs.1 7.59 lakhs being difference in parties’ accounts.
4. Both of these appeals are directed against the order of the CIT (A) and as the issues raised are more or less inter-connected, for the sake of convenience, they are considered together and disposed off in this common order.
I. ITA NO.401 (By the assessee):
5. The first effective ground is with regard to bad debts claimed in respect of the following parties have been turned down by the CIT(A):
