PRANAVA ELECTRONICS P LTD,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-12(2), BANGALORE

ITA 415/BANG/2015Status: DisposedITAT Bangalore06 April 2022AY 2010-1121 pages
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What did the Tribunal hold?

The Tribunal, following its own earlier order, directed the AO to restrict the disallowance under Section 14A on similar lines as in the previous assessment year. The disallowance of bad debts was also to be re-examined in light of the High Court's observations.

What were the facts?

The assessee's appeal against disallowance of bad debts and Section 14A expenses was remanded by the High Court. The High Court noted that the assessee was engaged in money lending and that the disallowance of bad debts and Section 14A expenses had not been properly examined.

What were the issues?

Whether the disallowance of bad debts written off and the disallowance under Section 14A were justified, considering the assessee's money lending business and the availability of own funds for investments.

Which sections of the Income-tax Act were involved?

Section 14A,Section 36(1)(vii),Section 36(2),Section 37(1),Section 115JAA

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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE

Before: SHRI CHANDRA POOJARI & SMT. BEENA PILLAI

For Appellant: Shri K.R. Pradeep, Advocate and Ms. Girija, Advocate
For Respondent: Shri Priyadarshini Mishra, Addl. CIT
Hearing: 07.03.2022Pronounced: 06.04.2022

Per Chandra Poojari, Accountant Member This appeal by the assessee originally came up for hearing before the Tribunal on the following grounds:-

“1. That the order of the authorities below in so far as it is against the appellant is against the law, facts, circumstances, natural justice, without juri iction, bad in law and all other known principles of law.

2.

The total income computed and total tax computed is hereby disputed.

3.

The Learned CIT(A) erred in confirming the disallowance of bad debts written off amounting to Rs. 4,86,14,074/-.

4.

The Learned CIT(A) erred in upholding the d

The order continues below.

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