TMI Blog2009 (4) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... into the profit and loss account and conesponding credit is made in a bad debt reserve account contrary to the provision of the Act and especially the Explanation to clause (vii) of section 36(1) of the Act brought into effect from April 1, 1989, by the Finance Act, 2001?” Held that- there was a clear finding of fact by the Assessing officer that the provision for “non-performing assets” created ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Department framing the following common question of law: "Whether the appellate authorities were correct in holding that for the purpose of writing off of bad debts it was not essential to square off each individual account of every debtor and it would be sufficient if the debit entries are made into the profit and loss account and conesponding credit is made in a bad debt reserve a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad and doubtful debts was not merely a provision but is to be viewed as an actual write off. The Explanation inserted to section 36(1) (vii) of the Act by way of amendment through the Finance Act, 2001, with retrospective effect from April 1, 1989, was subsequent to the decision of the Gujarat High Court. This aspect of the case has been examined by this court in CIT v. Wipro Infotech Ltd. [2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te authority, the same have been set aside by the Appellate Tribunal without noticing that it is only a provision and in reality it does not amount to writing off of bad debts. No material document is produced by the assessee before the Assessing Officer to show actual writing off of bad debts. 4. Mr. Sarangan learned senior counsel submitted that the concurrent findings recorded by the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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