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2013 (7) TMI 176 - HC - Income TaxWriting off bad debts - AO add the same on the grounds that these debts were to be written off in the Financial Year 2004-05 relevant to the Assessment Year 2005-06, as the decision with regard to the said debt being bad and was irrecoverable had been taken on 30.3.2005. - Held that:- where account books are not closed and not signed by the Board of Directors and not adopted by the shareholders as per the Companies Act, it is legally permissible to make adjustments before they are finally adopted - After audit had taken place and report of the Auditors was accepted, revised return was filed and it is only in the revised return, the debts to the tune of Rs.2 crores and odd had been declared as bad - The ground taken by the Assessing Authority and Appellate Authority for not accepting the said bad debts during the assessment year under consideration is contrary to the provisions of Section 36 (1) (vii) - Following decision of Kerala State Industrial Development Corporation Ltd. versus Commissioner of Income-Tax [2012 (9) TMI 805 - SUPREME COURT] - Decided in favour of Assessee.
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