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2013 (12) TMI 370 - HC - Income TaxBad Debts - Held that:- The claim for provision for bad and doubtful debts is created as per the provisions under Section 36(1)(vii) of the Act - The Tribunal accepted the contention of the assessee that since the balance outstanding in the provision account made under Section 36(1)(vii) was only Rs.1,81,00,000/- the bad debts can be debited only to that extent - Even if the assessee debits the entire bad debts of Rs.7.51 crores to the provision account then the said account will show a debit balance of Rs.5.7 crores which has to be closed by transferring it to the profit and loss account - Both the method will show the same results - Decided against Revenue. Excess provision written back - Held that:- The Tribunal found that there was no discussion about the same in the assessment order - The matter requires examination by the Assessing Officer - The issue was restored for fresh decision.
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