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2009 (11) TMI 3 - HC - Income TaxBad Debts – obligation to prove that the debt written off by him is indeed a bad deft for the purpose of allowance u/s 36(1)(vii) – power of AO to question the veracity of bad debts - business of developing and printing of photos – held that - 1.4.1989 the words ' any bad debt, or part thereof, which is established to have become, a bad debt in the previous year' were used and after the amendment w.e.f. 1.4.1989, same has been substituted by "any bad debt or part thereof which is written off as irrecoverable in the account of assessee for the previous year" - All the judgment, which have been cited at the Bar, genuineness of entries, have never been doubted therein - Under Section 143(2) of the Act, Assessing Officer is empowered to require the assessee to produce the evidence in support of the return - , that said debt was arising out of trading activity, there was relationship of debtor or creditor, same was irrecoverable – AO has power to examine the genuineness – ITAT order set aside
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