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2020 (12) TMI 51 - HC - Income TaxExemption u/s 10A - payments made to sub contractors who have separately exported and have been issued foreign inward remittance certificate - whether the appellate authority were correct in holding that maintenance of separate accounts for STP units and non STP units was only directory and not mandatory in accordance with RBI conditions, Government Notification and Income Tax Act? - expenses like freight, telephone charges and insurance attributable to the delivery of articles or things on computer software outside India reduced from export turnover should be reduced from total turnover while computing deduction under Section 10A - HELD THAT:- Issue decided in favour of assessee as relying on own case [2020 (11) TMI 379 - KARNATAKA HIGH COURT] - Substantial questions of law Nos.1 to 3 are answered against the revenue and in favour of the assessee. Disallowance of bad debts written off - Whether the tribunal was correct in allowing the write off as bad debt in the facts and circumstances of the present case, when invoices were raised few months prior to the write off of the debtors were reputed companies including Government undertakings and business was continued with the debtors by the assessee without establishing the debt has become bad and recorded a perverse finding? - HELD THAT:- Once the assessee had written off debts as irrecoverable in his / its accounts, the assessee need not be required to prove that they have become bad etc. See LAWLYS ENTERPRISES P. LTD. VERSUS COMMISSIONER OF INCOME-TAX [2008 (7) TMI 373 - PATNA HIGH COURT]. Accordingly, we hold that the bad debts written off by the assessee in its books of account shall be allowed as a deduction. It is ordered accordingly. From perusal of the aforesaid relevant extract of the order passed by the tribunal, it is axiomatic that the tribunal has not recorded any specific finding whether the assessee has written off bad debt in the books of accounts as irrecoverable. Therefore, the order passed by the tribunal to the extent it records the finding with regard to the bad debts is hereby quashed and the matter is remitted to the tribunal to decide the issue afresh after recording a specific finding whether or not the assessee has written off the bad debt in the books of accounts as irrecoverable. Accordingly, substantial question of law Nos.4 and 5 are answered.
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