Nature of write off of sundry advances for computation of income

Last updated: 09 October 2021

Court :
ITAT Delhi

Brief :
The present appeal has been preferred by the assessee against the order dated 26.09.2017 of the Ld. Commissioner of Income Tax (Appeals)-37, New Delhi, (hereinafter referred to ‘CIT(A)’) for the Assessment Year 2013-14.

Citation :
ITA No.7226/Del/2017

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI “E” BENCH: NEW DELHI
(THROUGH VIDEO CONFERENCING)
BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER
AND
SHRI SANJAY GARG, JUDICIAL MEMBER
ITA No.7226/Del/2017
Assessment Year : 2013-14

M/s Matrix Cellular
International Services
Ltd.,7-Khullar Farms,
Mandi Road, Mehrauli,
New Delhi-110030

PAN-AAECM5169M

The Addl. CIT,
Special Range-6,
C.R. Building,
New Delhi-110002

Appellant by Sh. A. K. Khanna, CA
Respondent by Sh. Gaurav Pundir, Sr. DR
Date of Hearing : 28.09.2021
Date of Pronouncement :01.10.2021

ORDER

1. A perusal of the grounds of appeal reveals that the assessee is aggrieved by the action of the Ld. CIT(A) in confirming the addition made by the Assessing Officer on account of disallowance made in respect of sundry advances written off of Rs.10,26,158/-.

2. The Ld. DR on the other hand, has relied upon the findings of the lower authorities. Considering the above submissions of the assessee, the matter is restored to the file of the Assessing Officer with a direction to verify the contention of the assessee that the sundry advances written off were taken into account in the year under consideration or in earlier years for computing the income of the assessee and if the above contention of the assessee is found correct, then no disallowance will made on this issue.

3. In the result, the appeal of the assessee is treated as allowed for statistical purposes.
Order was pronounced in the Open Court on 01/09/2021.

Please find attached the enclosed file for the full judgement