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2012 (7) TMI 763 - AT - Income TaxAdditions u/s 145A and allowing deductions - assessee filed copies of tax audited report of the current year as well as the last year to show that the assessee has been following the exclusive method of accounting and thereafter prepared adjustments u/s 145A regularly - claim of the assessee was correct – In favor of assessee Disallowance of bad debt - assessee’s contention was that the bad debts now claimed were part of its income in earlier years which has also been admitted by the A.O. and the same have been now written off in their books of accounts and this is sufficient for claiming deduction for bad debts – Held that:- As only two conditions are required to be satisfied for claiming deduction for bad debts; one is that it should have been part of income in the earlier year and that it should be existing and it should be written off in the books of accounts. Since both these conditions are fulfilled in this case, ld. CIT(A) has rightly allowed the claim of the bad debts of the assessee – In favor of assessee
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