Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (6) TMI 298 - ITAT COCHINDis-allowance of bad debts - difference in accounting methodology - bad debts of 7.5 crores adjusted against available balance of 1.81 crore in provision for bad debts and balance directly to P/L/ a/c - Revenue dis-allowed claim on ground that whole bad debts should have routed through Provision for Bad debts - Held that:- Contention of assessee that as per sec. 36(2)(v), the bad debts can be debited only to the extent of the available balance in the Provision account, is accepted as the same is in accordance with the accounting principles. Even if methodology suggested by AO is accepted, net effect would have been same. Hence CIT(A) has rightly deleted the dis-allowance - Decided in favor of assessee. Reduction of excess provision back - partial dis-allowance u/s 14A - dividend income - Held that:- Matter restored to file of AO for fresh examination.
|