Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 403 - AT - Income TaxWrite off the bad debts disallowed - CIT(A) held assessee eligible for deduction under section 36(1)(vii) - Held that:- The write off has been effected after following well laid down procedure for recovery at various levels in the organisation. Borrowers had also been given facility of re-schedulement which was objected by some of them and the write off was effected only when the borrowers failed in terms of re- schedulement of loans. However, where any amount was recovered subsequently against bad debts written off, the same has been offered as income by the assessee and tax has also been paid. Taking into account the number of borrowers who are about 28034 and also the fact that the borrowers are poor women with low level of literacy, assessee tried his best for recovery by issuing a public notice and other methods appropriate in the circumstances of the case. Thus remit the issue to the file of AO to verify whether write off of bad debts has been with respect to the individual accounts of the assessee's borrowers and after verification the AO shall decide the issue in accordance with law, after giving a reasonable opportunity of being heard to the assessee - appeal of the Revenue is allowed for statistical purposes.
|