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2015 (9) TMI 1238 - AT - Income TaxReopening of assessment u/s.148 - Held that:- The fact that the assessee had changed its method by treating the accrued interest on cash basis as against mercantile basis came to light only during the assessment proceeding for the assessment year 2007-08. Therefore, there was a valid reason for the Assessing Officer to believe that the certain income had escaped assessment. In these circumstances, we find that the Ld. CIT (A) was justified to reopen the assessment of the assessee invoking the provisions of section 147 & section 148 of the Act. - Decided against assessee. Disallowance of bad debts - Held that:- The assessee is entitled to the claim of deduction on account of bad debts even for the loss incurred due to irrecoverable loans and advances made during the course of money lending business of the assessee. Therefore respectfully following the decision of the in the case All Growth Finance & Investment Pvt Ltd., Vs. CIT [2011 (5) TMI 920 - DELHI HIGH COURT] we hereby direct the Ld. Assessing Officer to allow deduction to the assessee for its claim of bad debts on account of irrecoverable interest income which was treated as the income of the assessee during the earlier years and loss incurred due to irrecoverable loans and advances made by the assessee during the course of its money lending business subject to verification of the fact that the interest income were actually offered to the income of the assessee during the earlier years and the loans and advances were made during the course of the money lending business of the assessee. Accordingly, this issue is remitted back to the file of the Ld. Assessing Officer. - Decided in favour of assessee for statistical purposes. Disallowance of the claim of set-off of unabsorbed business losses of the earlier year - Held that:- From the provisions of Section 80, Section 32(2) and Section 72(2) of the Act, it is evident that loss of the earlier years other than the unabsorbed depreciation shall not be allowed to be carry forward unless the return of income is filed within the due date specified U/s.139(3) of the Act - Decided against assessee.
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