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2012 (5) TMI 29 - HC - Income TaxClaim of assessee as bad debts written u/s 36(1)(vii) - Revenue stated writing off bad debts of Rs.5.12 crores in one year itself would distort the income of the said year - Held that:- The income returned in the year in question was at loss and the income assessed by the Assessing Officer is at a loss of more than Rs.7.94 crores, writing off of bad debts would result in increase in the loss figure - no evidence or material on record to show the deliberate attempt by the assessee to delay writing off the bad debts in the earlier assessment years, which has resulted in understatement of income or short recovery of tax - in most of the earlier years, the assessee had shown taxable income and if bad debts were written off in the said years, it would have resulted in lower taxation or nil taxation - Revenue has not been able to dispute and show that the provisions of Section 36(1)(vii) r.w.s 36(2)(i) are not satisfied in the present case – in favour of assessee.
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