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2013 (11) TMI 965 - AT - Income TaxProvision for bad debts or trading loss – held that:- claim of bad debts which is a provision made in the books of account not allowed - Regarding claim of trading loss, . If a bad debt cannot be allowed as a deduction on the general commercial principles, then how a trading loss could be allowed, specially when could not be supported by specific evidences. If the assessee wanted to claim bad debt as a trading loss then it was accepted to place on record the supporting evidences. It is worth to quote an observation of the A.O - Decided against the assessee. Deduction u/s 80HHC - Held that:- In the present case there was no export turnover of the impugned amount of bad-debt so no question to consider the same for the deduction u/s 80HHC - The assessee was asked to furnish the computation of deduction u/s 80HHC but at all stages of proceedings the assessee had not furnished the same - The four ingredients for allowance of deduction u/s 80HHC have not been fulfilled in the present case - The sales should have been shown in either year under consideration or past years and over which on the profit the assessee ought to have got the benefit of deduction u/s 80HHC – Deduction not permissible – Decided against assessee. Penalty u/s 271(1)(c) – Held that:- The assessee had not appeared before the Revenue Authorities - In the light of the order now pronounced by department pertaining to the quantum addition, the assessee deserves right to explain his case pertaining to the concealment of penalty to learned CIT(A) – The issue was restored for fresh decision.
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