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2008 (6) TMI 338 - HC - Income TaxBad debts- Deduction- The assessee for the assessment years 1990-91 to 1993-94 debited the provision for bad and doubtful to its books of account in respect of different items though it did not write it off against each individual debtor, and on the basis thereof, claimed deduction under section 36(1)(vii) of the Income Tax Act, 1961. The Assessing officer disallowed deduction on the ground that the claim was only of a provision made by it but not written of in the books of account. The assessee also claimed deduction under section 80-O of the Act which the Assessing officer disallowed on account of assessee’s failure to furnish particulars of expense incurred to earn the gross income. The Commissioner (Appeals) upheld the order of Assessing officer. The Tribunal allowed the assessee’s appeal by remanding back the matter. Held that- (i) the Assessing officer was required to consider and examine the claim of the assessee on the basis of the facts stated and material available. Thus the Tribunal is justified. (ii) In the absence of non-furnishing of particulars by the assessee to claim the benefit before the Assessing officer for the purpose of section 80-O, the claim could not be accepted. Deduction under section 80-O of the Act was to be allowed as against the net income computed in accordance with the provisions of the Act as contemplated under section 80AB of the Act.
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