TMI Blog2017 (3) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... the P & L Account and crediting to provision for overdue interest account following the guidelines issued by RBI. We find that this issue is highly debatable and it cannot be adjudicated while acting u/s.154 of the Act. The AO should have made disallowance only while framing regular assessment or reassessment, which was made prior to resorting to this rectification. This disallowance cannot be made while acting u/s.154 of the Act reason being this is not a prima facie mistake it is a highly debatable issue. In term of the above, we allow this issue of assessee’s appeal - G.A No. 3652 of 2015, ITAT No. 162 of 2015 - - - Dated:- 17-2-2017 - Aniruddha Bose And Arindam Sinha, JJ. Mr. Nizamuddin, Adv. for the Revenue Mr. Khaitan l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case the Ld. Tribunal had erred in law in allowing the appeal of the assessee deleting the disallowance made under Section 154 of the I.T. Act, 1961, by holding that the issue was debatable while mistake was apparent from record within the meaning of Section 154 of the I.T. Act, 1961? (ii) Whether on the facts and circumstances of the case the order of the Ld. Tribunal has erred in law in deleting the disallowance made under Section 154 of the I.T. Act, 1961, relating the assessment year 2009-10 as well as in assessment year 2007-08 which was beyond the subject matter of appeal? He submitted, by relying on the supplementary affidavit filed by the Revenue, the Assessing Officer in the assessment order while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has debited an amount of ₹ 2,91,93,886/- in the head provision for bad and doubtful debts in Column 38 of the Part A-P L of the return. But no amount was written in Column no.37 of the same part means there was no bad debt which were written off. Provisions in this case are not allowable deduction if not expensed/happened. Provided that in the case of an assessee to which Cause (viia) applies, the amount of deduction relating to any such debt or part thereof shall be limited to the amount by which such debt or part thereof of exceeds the credit balance in the Provisions for bad and doubtful debts account made under that clause. Assessee is entitled to get deduction u/s.36(1)(viia) of the Act which has been conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L Account and crediting to provision for overdue interest account following the guidelines issued by RBI. We find that this issue is highly debatable and it cannot be adjudicated while acting u/s.154 of the Act. The AO should have made disallowance only while framing regular assessment or reassessment, which was made prior to resorting to this rectification. This disallowance cannot be made while acting u/s.154 of the Act reason being this is not a prima facie mistake it is a highly debatable issue. In term of the above, we allow this issue of assessee s appeal. It is clear from the above that the deletion of the ₹ 67,33,445/- allowed as deduction under section 36(1)(viia) cannot be said to have been made in rectification of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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