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The Tax Publishers D.K. Industries v. ITO [ITA No. 683/Kol/2013, dt. 8-4-2016] : 2016 TaxPub(DT) 2124 (Kol-Trib) Cash credits on advances recovered by a money-lender *Facts:* Assessee firm in money lending business was carrying loans and advances given to 3 parties for almost 10 years. During the said assessment year they were able to recover monies from the said parties. One of the party could be summoned and was placed on an affidavit of the recovery. As for the other two the last available address was furnished requesting the assessing officer to summon them. The assessing officer despite the same added the amounts as cash credit, upheld by the Commissioner (Appeals). On further appeal: Held in favour of the assessee that no addition on cash credits could be made, if done then the alternative plea of the assessee to allow the 10 year old advance as a bad debt under section 36(1) (vii) needs to be allowed thus neutralizing the overall addition.

The Tax Publishers

D.K. Industries v. ITO [ITA No. 683/Kol/2013, dt. 8-4-2016] : 2016 TaxPub(DT) 2124 (Kol-Trib)

Cash credits on advances recovered by a money-lender

Facts:

Assessee firm in money lending business was carrying loans and advances given to 3 parties for almost 10 years. During the said assessment year they were able to recover monies from the said parties. One of the party could be summoned and was placed on an affidavit of the recovery. As for the other two the last available address was furnished requesting the assessing officer to summon them. The assessing officer despite the same added the amounts as cash credit, upheld by the Commissioner (Appeals). On further appeal:

Held in favour of the assessee that no addition on cash credits could be made, if done then the alternative plea of the assessee to allow the 10 year old advance as a bad debt under section 36(1) (vii) needs to be allowed thus neutralizing the overall addition.