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2015 (2) TMI 491 - AT - Income TaxReopening of assessment - provision for doubtful debts are written back is an ascertained liability and hence the same should not be allowed as deduction - Held that:- Now the detail in regard to doubtful debts were fully disclosed in the return of income. Assessee has offered to tax provision for doubtful debts debited in the P&L A/c of ₹ 21,57,440/- . The assessee has claimed exclusion of provision for doubtful debts no longer required and written back amounting to ₹ 45,10,941/- and ₹ 21,50,151/- respectively. In the audited accounts, it is duly shown under Schedule-17 'Manufacturing, Selling and other expenses' and Schedule- 14 'Other Income'. From the above it is apparent that assessee has fully and truly disclosed all the materials in this regard. So it cannot be said that there was any failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. Hence manifestly this reopening is hit by the proviso to section 147 of the Act and in the light thereof reopening is not sustainable. - Decided in favour of assessee.
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