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2003 (1) TMI 43 - HC - Income TaxAllowance of bad debts - whether the debt in question had become a bad debt, and whether the deduction was admissible on the ground that it was validly written off as a bad debt in the context of the provisions of section 36(1)(vii) and sub-section (2) of section 36 of the Act - We, therefore, cannot subscribe to the observations of the Tribunal that section 43B would not be applicable to the assessee's case on the ground that the electricity duty recovered by it did not belong to it, but it was retained for a short time, as agent of the Government. The amendment inserting the first proviso to section 43B was brought about by the Finance Act, 1987, inserted with effect from April 1, 1988, is held to be having a retrospective effect, as per the decision in Allied Motors' case - The Tribunal has referred to this proviso in its order. Therefore, the deletion of the addition made by the Income-tax Officer was justified under the said proviso, which had a retrospective effect, if the duty is actually paid by the due date envisaged under the said proviso to section 43B.
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