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2022 (1) TMI 489 - HC - Income TaxPower of ITAT u/s 254 - Addition on account of bad debt deleted - addition as the books of accounts of the assessee corporation were not audited under section 44AB of the income tax act, 1961 and it could not be ascertained whether bandits were actually written off in the books or not - ITAT deleted the addition - HELD THAT:- In the present case, the order of the Assessing Officer was challenged in appeal before the Commissioner. While deciding an appeal, the Commissioner has all the powers of Assessing Officer and he may affirm, reduce, endorse or annul the assessment. In the present case, the Commissioner, on the basis of material on record, recorded a categorical finding of fact, which has been affirmed by the Income Tax Appellate Tribunal in further appeal exercising the powers conferred on it by Section 254 (1) of the Income Tax Act, 1961 and we find no legal error in exercise of powers by the Income Tax Appellate Tribunal. Tribunal has committed no illegality in upholding the finding of fact recorded by the commissioner income tax deleting the addition made on account of bad debt by holding that the assessee has not raised any claim of bad debts either in the profit and loss account or balance sheet. Income Tax Appellate Tribunal is justified in dismissing the appeal of the Department by affirming the finding of fact recorded by the Commissioner regarding the addition having been made by the Assessing Officer and the orders of the commissioner as well as the Income Tax Appellate Tribunal or not perverse or erroneous. Penalty u/s 271(1)(c) - HELD THAT:- Since the order passed by the Assessing Officer holding that the assessee had wrongly claimed benefit of ‘bad debts written off’ was set aside by the Commissioner in appeal and the Commissioner’s order has been affirmed by the Income Tax Appellate Tribunal and Income Tax Appeal filed by the department against the aforesaid order of the Income Tax Appellate Tribunal has been dismissed, consequently this appeal is also liable to be dismissed.
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