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2012 (7) TMI 155 - AT - Income TaxDisallowance of bad debts - Held that:- Simply following the findings of earlier assessment years AO has not given any reason for disallowing the claim - after the amendment in Section 36(1)(vii), the assessee is not required to demonstrate that the debt is bad - in favour of assessee. Addition of service charges - AO stated that company changed its policy of accounting the service charges from mercantile system to cash system - Held that:- As assessee being a non banking finance company is bound to follow the guidelines of RBI according to which NBFC are not required to credit interest on NPA on accrual basis as the interest is required to be credited only on receipt basis - in favour of assessee. Disallowance being amount deducted as TDS on payments in respect of charges for services - Held that:- That amount paid was only to the discharge of the liability which liability the assessee had taken to pay as part of the agreement entered into. The amount so paid as tax has been held to be the amount payable between the collaborator and the assessee - against assessee.
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