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2024 (12) TMI 766 - AT - Income TaxAdmissibility of the claim for deduction of bad debts not made in the original return - claim made by way of filing of revised return - HELD THAT - Admittedly facts relating to disclosure of claim of bad debts written off in the audited financial statements under note no. 19 are not in dispute. These financial statements were before the ld. AO. Claim was made by furnishing a revised computation along with complete details of the parties whose balances were written off. Also assessee substantiated its claim by submitting that corresponding income was offered to tax in the preceding years against which nothing cogent was brought on record by the Revenue to controvert the same. Assessee also explained the reasons which lead to the irrecoverability of the balances and were finally written off as bad debts. Position of law on the issue before us is a settled position especially by the decision of TRF Ltd. 2010 (2) TMI 211 - SUPREME COURT coupled by CBDT circular referred above. On perusal of the judgement in the case of Goetz (India) Ltd. 2006 (3) TMI 75 - SUPREME COURT no doubt Hon ble Court held that assessee can make a claim of deduction which has not been claimed in the return only by filing a revised return within the time allowed. However in the same judgement Hon ble Court held that nothing impinges on the power of the appellate authorities to entertain such a claim of the assessee . Thus power of an appellate authority to admit additional claim is not affected. In the present case before us there is no dispute on facts that bad debts have been written off. Thus under the law assessee is undisputedly eligible for the claim so made. The only hurdle created by the AO is on account of this claim not made by way of filing of revised return. Claim of assessee is ought to be allowed more particularly when there is no embargo applicable on the appellate authority to consider such claim as enunciated in Goetz (India) Ltd. 2006 (3) TMI 75 - SUPREME COURT Accordingly ground taken by the assessee is allowed. Appeal of the assessee is allowed.
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