Case Law Details
Uma Industries Vs ITO (ITAT Ahmedabad)
The appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Appeals), Gandhinagar ( ‘CIT(A)’ in short) dated 20.02.2019 arising in the assessment order dated 29.03.2016 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2013-14.
2. At the outset we note that, the impugned appeal has already been listed several times and the notice intimating the date of hearing of toady was also sent upon the assessee. At the time of hearing, neither the assessee appeared nor sought any adjustment. Thus, we decided to proceed to adjudicate the issue ex parte to the assessee.
3. The only issue raised by the assessee is that the learned CIT(A) erred in sustaining the disallowances of bad debt written off for an amount of Rs. 20,12,651/- only.
4. The assessee is a partnership firm engaged in the business of cotton ginning and pressing and the other business related thereto. The assessee for the year under consideration i.e. A.Y. 2013-14 has declared gross profit of Rs. 1,20,01,696/- and claimed that business will discontinued w.e.f. 1st April 2013. The assessee in profit loss account written off bad debt for Rs. 1,47,18,274/- only. On question by the AO with regard to nature of debtor and details such as ledger copies, address, PAN and proof showing effort made for recovery. The assessee in response simply relied on the judgment of Hon’ble Supreme Court in case of TRF Ltd vs. CIT (2010) 323 ITR 397 (SC).
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