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2022 (11) TMI 1199 - ITAT AHMEDABADAdditions of unexplained cash credit u/s 68 - Adjustment of Bad debts under the provision of section 36(1)(vii) - Addition made by the authorities below to the extent under the provisions of section 68 - HELD THAT:- The amount of unexplained cash credit was adjusted by the assessee against the debtors meaning thereby the debtors in the books of accounts of the assessee were written off on account of such adjustment. The authorities below treated the sum as unexplained cash credit u/s 68. Thus, there remains no ambiguity to the fact that assessee has made its debtors at NIL value and accordingly the assessee is entitled to claim the deduction by way of writing off bad debts of these sundry debtors within the meaning of the provision of section 36(1)(vii) - Thus, we set aside the order of the CIT(A) and direct the AO to allow the deduction for the bad debts only. Thus, ground of appeal of the assessee is partly allowed.
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