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2015 (7) TMI 717 - AT - Income TaxDisallowance of bad debts claimed - Held that:- Hon’ble Supreme Court has held in the case of T.R.F. Ltd. Vs. Commissioner of Income Tax [2010 (2) TMI 211 - SUPREME COURT] that in order to obtain a deduction in relation to bad debt it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the debt is written off as irrecoverable in the accounts of the assessee. In the present case, the assessee has written off as irrecoverable bad debt in its accounts this fact is not disputed by the Revenue. Thus disallowance deleted - Decided in favor of assessee. Addition on account of stock of work in progress - Held that:- It is not disputed by Revenue that in A.Y. 2005-06 the assessee was allowed to treat the closing stock of earlier year as opening stock of next year. It is well settled that the closing stock of earlier becomes the opening stock of succeeding year. In this view of matter, and examining all aspects it would be in the interest of justice if the assessing officer is directed to allow the closing stock of last year as the opening stock of current year. We accordingly, hereby direct the assessing officer to allow the closing stock of last year as the opening stock of current year. - Decided in favour of assessee for statistical purpose.
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