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2021 (2) TMI 359 - AT - Income TaxUnrealized disputed rent - Addition being disputed income not realized - Addition as bed debts - assessee company leased out its premises to International Institute of Planning and Management and the assessee received license fees - it is the contention of the assessee that they have still not recovered during the FY 2012-13 relevant to the assessment year 2013-14, the amount of ₹ 64,80,000/- and therefore, the assessee has treated the amount as bad debts - HELD THAT:- As in M/S ESSAR TELEHOLDINGS LTD. [2015 (5) TMI 810 - BOMBAY HIGH COURT] while analyzing Section 36(1)(vii) of the Act has held that it does not require the assessee to establish that the debt written off was bad and all that is required is it being written off as such. Meaning thereby, no evidence or other things needs to be sought by the Department from the assessee when he is treating such amount as bad debts. The only consideration is that such amount has been treated as bad debts in the books of accounts of the assessee. This is only the requirement to the provision. The Ld. DR also could not place any evidence before us to demonstrate that the amount of ₹ 64,80,000/- was already recovered by the assessee. No addition should be sustained in the hands of the assessee on this issue of treatment of amount as bad debts. Therefore, we direct the Assessing Officer to delete the addition from the hands of the assessee. Appeal of the assessee is allowed
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