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(d) (i) The assessee (Haryana Steel) also did not furnish the copy of suit filed against Haryana Steel & Alloys Ltd., Sonepat, in support of its claim that 11 cheques of the party towards the bills discounting were dishonoured in the previous year relevant to asst. yr. 1999-2000;
(ii) Specific details and confirmation that the cheques were dishonoured, were also not filed;
(iii) The assessee had not accounted for the bill discounting charges in the relevant year, and
(iv) claim for allowability of bad debts written off in respect of this party was not admissible;
(2) Haryana Steel & Alloys Ltd., Sonepat: Bills raised on this party were discounted in the year 1999-2000. The details of the bills discounted and discount charges accounted as income were also furnished by the party and the said party had issued cheques towards the bill discounting amounts which bounced in asst. yr. 1999-2000 and legal suits were stated to be filed Under Section 138 of Negotiable Instruments Aet before the Court of Addl. Sessions Judge, Patiala House, New Delhi. Assessee did not file copy of suit for verification.

18. After considering the remand report of the AO the learned CIT(A) vide para 5.3 has decided the issue party-wise as under:

(1) SMS Construction, Udaipur: The claim of the assessee in respect of other amount is eligible for deduction @ Rs. 2,50,341 per year as similar income was shown in asst. yrs. 1998-99 and 1999-2000.
(2) Haryana Steel & Alloys Ltd., Sonepat : According to the evidence submitted, the Punjab National Bank memorandum does not contain any specific details to confirm that cheques bounced and no bill discounting charges are booked for the year under consideration. Thus the claim is not allowable.
I am of the opinion that only to the extent the income was taken into account in computation and confirmed by the Authorised Representative's report would be eligible for deduction. Assessment year 1998-99, 1999-2000 @ Rs. 2,50,341 i.e. Rs. 5,00,682.
Haryana Steel & Alloys Ltd., Sonepat:
Bills raised on this party were discounted in the year 1999-2000. The details of the bills discounted and discount charges accounted as income is given in the statement No. 1. This party has issued 11 cheques towards the bill discounting amount which bounced in asst. yr. 1999-2000 and legal suits were stated to be filed Under Section 138 of Negotiable Instruments Act before the Court of Addl. Sessions Judge, Patiala House, New Delhi. The assessee has not furnished copy of the suit filed, for verification.