Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 1115 - AT - Income TaxDisallowance of claim of bad debts - amount was worked out on the basis of short realisation from the debtors - Need for establishment of debt - HELD THAT:- In view of the ratio laid down in the case of T.R.F. Limited [2010 (2) TMI 211 - SUPREME COURT] holding that after 1-4-1989, it is not necessary for assessee to establish that debt, in fact, has become irrecoverable; it is enough if bad debt is written off as irrecoverable in accounts of assessee. Examining the facts in the instant case, we find that the assessee has rightly claimed the bad debts in its books of account and claimed it as deduction as bad debts as it has been shown as irrecoverable by the assessee and duly written off in the books of accounts. We, therefore, reverse the finding of the ld. CIT(A) and delete the disallowance of bad debts - Decided in favour of assessee. Disallowance made in respect of PF & ESI in respect of employees’ contribution u/s. 36(1)(va) r.w.s. 2(24)(x) - scope of amendment - HELD THAT:- As assessee had made the remittance/payment of employees’ contribution towards PF & ESI before the due date of filing of return of income u/s 139 (1) of the Act. Therefore we are inclined to allow the appeal of the assessee and direct the A.O. to delete the addition and hold that the Amendment brought in Finance Act 2021 w.e.f. 01.04.2021 by inserting an Explanation to section 36(1)(va) and section 43B of the Act is prospective in nature and would apply from AY 2021-22 onwards and, therefore, the Amendment is not applicable to the assessment year under consideration. - Decided in favour of assessee.
|