Case Law Details
PCIT Vs Sriram Chita Pvt Ltd (Karnataka High Court)
Karnataka High Court held that bid loss claimed by the assessee cannot be disallowed merely because a different treatment was given in the books of accounts. Entries in the books of accounts are not determinative or conclusive and the matter is to be examined on the touchstone of provisions contained in the Act.
Facts- The assessee, for A.Y. 2014-15, debited a sum of Rs.14,13,48,676/- as loss on own chits bidding and also claimed bid loss of Rs.18,65,72,307/-. From the aforesaid amount, the assessee reduced an amount of Rs.14,13,48,676/- being bid loss and claimed reduction of Rs.4,52,23,631/- on account of bid loss.
The assessee filed ROI on 30.09.2014 declaring a loss of Rs.4,77,49,534/-. Thereafter, the assessee filed revised return on 29.10.2014 in which the assessee claimed bid loss of Rs.14,13,48,676/-. The Assessing Authority, by an order dated 21.12.2016, held that method of accounting and bid loss claimed as an expenditure in the year of pricing, was not in consonance with system of accounting and therefore, disallowed the claim.
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