Accounts were closed prior to Write-off of Advances: ITAT upholds Disallowance of Write-off [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai bench presided by Mr. Vikas Awasthy, Judicial Member, and Mr. Amarjit Singh, Accountant Member has held that accounts were closed prior to the write-off of advances and upholds disallowance of the write-off.

The appellant, Maharashtra Film Stage, and Cultural Development Corporation Ltd. filed its Return of Income declaring a loss of Rs.11,15,88,425 was filed on 30.09.2009. The Return of Income was revised on 26.09.2010 declaring a total loss of Rs.30,59,943.

During assessment proceedings, the Assessing Officer noticed that as on 31.3.2009, the appellant had finalised accounts based on the audit report subsequently based on Board Resolution dated 18.5.2010 the advances were written off and the same was not allowable since the accounts of the appellant for the financial year under consideration were closed on 31.3.2009.

The aggrieved appellant filed an appeal before the CIT(A). The CIT(A) while confirming the assessment order held that the books of account of the assessee have been audited under the provisions of section 44AB of the Act along with the report in Form No.3CA / 3CB which means the account of the assessee was closed on 31.3.2009, therefore writing off based on Board Resolution dated 18.5.2010 cannot be considered as allowable. Hence the appellant filed an appeal before the ITAT.

The Tribunal upholds the decision of the lower authority since the appellant fails to place any relevant material to prove contrary to the findings of the CIT(A).

Mr. C.T. Mathews appeared on behalf of the revenue.

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