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2011 (9) TMI 756 - DELHI HIGH COURTBad Debt - provisions of section 36(1)(vii) - Sum of Rs.12,906.18 lacs added by the assessee to special reserve has been debited by the assessee and claimed as Expenditure - the Tribunal did not accept the submission of the assessee that the provision relating to the claim of deduction of bad debts actually written off from the provisions of the aforesaid Section. - Held That:- the assessee has taken the plea of double taxation as the amount is surrendered in the Assessment Year 1998-99. However, legal position cannot be disputed that proviso to Section 36(1)(viii) of the Act is retrospective in operation and therefore, this had to be dealt with in the assessment in question. If the assessee had surrendered the amount in the Assessment Year 1998-99, it would be permissible to take credit thereof in that year. Permitting the assessee to take such a course of action for the Assessment Year 1998-99, insofar as this appeal is concerned, we answer the question in favour of the Revenue and against the assessee. As a result thereof, this appeal is dismissed.
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