TMI Blog2017 (3) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors. Hence, in the facts of the present case, find no infirmity in the orders of the authorities below on this issue. Claim of the assessee for deduction under section 36(1)(vii) in respect of write off of bad debts - Held that:- As find that for this deduction, the assessee has to establish that the bad debts in question were actually written off by the assessee as irrecoverable in the accounts of the assessee for the relevant previous year. In the present case, it is seen that the books of accounts of the assessee were impounded in the month of September 2003 and therefore, the entries could be made in all the 4 years which are in dispute before me because the books of accounts were very much available with the assessee during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner, total addition made in this year is ₹ 4,72,180/-. 4. In the AY 2001-02 also, he has made similar addition under section 68 of the IT Act of ₹ 6,08,000/- and consequentially disallowed the interest of ₹ 1,03,337/-. In addition to that, in AY 2001-02, he has also made disallowance of ₹ 16,45,400/- by disallowing the claim of the assessee in respect of write off of bad debts under section 36(1)(vii) of the IT Act. 5. In AY 2002-03 also, similar addition of ₹ 8,73,500/- was made under section 68 and consequent disallowance of interest was also made of ₹ 1,57,230/- . In addition to this, in the AY 2002-03 disallowance of ₹ 13,65,000/- was made by disallowing the claim of the assessee for ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 2nd issue i.e., writing off of bad debts, it was submitted by learned AR of the assessee that the books of accounts of the assessee were impounded in September, 2003 and therefore, the assessee could not make entries in the books of accounts for writing off of bad debts. He submitted that copy of Balance Sheet and P L Accounts for all the 4 years are available on pages 1-22 of the paper book and from the same, it can be seen that in each of the year where the assessee has claimed deduction on account of write off of bad debts, debit has been made in the P L account as bad and doubtful debts of ₹ 16,65,400/- in AY 2001-02 as per page 8 of paper book, of ₹ 36,54,400/- in 2002-03 in page 12 of paper book and ₹ 16,44,820 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urden is on the assessee to establish identity of the cash credit or and his credit worthiness and genuineness of the transactions. In the present case, the assessee has failed to carry out his obligations and hence, the burden cannot be shifted to the revenue to find out from the creditors about their identity and credit worthiness after receiving the names and addresses of the creditors. Hence, in the facts of the present case, I find no infirmity in the orders of the authorities below on this issue. 11. Regarding the 2nd issue i.e., regarding claim of the assessee for deduction under section 36(1)(vii) in respect of write off of bad debts, I find that for this deduction, the assessee has to establish that the bad debts in question wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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