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2020 (12) TMI 97 - ITAT AHMEDABADDisallowance u/s.14A r.w Rule 8D - CIT-A re-worked out disallowance - HELD THAT:- A perusal of section 14A would indicate that the expenditure attributable to earning of exempt income is to be disallowed. If the assessee has not debited any expenditure or has not claimed any expenditure for earning exempt income, then on presumptive basis expenditure cannot be calculated for disallowance. CIT(A) has appreciated the case of the assessee based on the details and explanation given by the assessee, and also observed inaccuracy in working out average investment i.e. instead of ₹ 41,89,019/-, the AO has taken the figure ₹ 1,07,72,757/- because as per the balance sheet, investment income which are exempted as on 31.3.2014 was ₹ 41,89.019 and as on 31.3.2013 was of ₹ 41,89,019/-. We find that the ld.CIT(A) has examined the issue critically and re-worked out disallowance in accordance with the provisions contained in section 14A and the rule referred thereto Disallowance of claim of bad debt - HELD THAT:- This issue is squarely covered by the decision of TRF Ltd. [2010 (2) TMI 211 - SUPREME COURT] and Reliance Petrochemical [2010 (3) TMI 80 - SUPREME COURT] wherein it is held that as per the amended provision, condition precedent for claiming bad debts is that assessee has to write off amount of bad debts in its books of account - in order to claim deduction under section 36(1)(vii) it is sufficient for the assessee to demonstrate that debt in fact has become irrecoverable and it has been written as such in the accounts of the assessee. The assessee in the present case has given a detailed note regarding the reasons for writing off the amounts in its books of accounts before the ld.CIT(A), and held that the AO was not justified in denying the claim of the assessee. No reason to interfere in the order of the CIT(A). It is upheld, and the ground of appeal of the Revenue is rejected.
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