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2012 (12) TMI 61 - ITAT MUMBAISetting off of closing provision determined by the AO u/s. 36(1)(viia) against the bad debts written off - Held that:- Credit balance for the purpose of considering provisions for bad and doubtful debt u/s. 36(1)(viia) will be opening credit balance i.e. balance brought forward as on 1st April to the relevant accounting year – In favor of assessee Disallowance made by the AO with regard to payment to Master Card International and Visa Card International – Held that:- Even if no TDS was deducted on the payments made to Visa International and Master Card International, it could not be disallowed in view of Article 26(3) of Indo-US DTAA because no disallowance could be made in respect of payments made to residents on ground of non-deduction of tax at source – In favor of assessee Addition on account of Unmatured forward exchange contracts – Held that:- Anticipated losses on account of existing obligation as on 31st March, determinable with reasonable currency, being in the nature of expenditure/accrued liability, have to be taken into account while preparing financial statement - matter should be restored to AO to consider liability which has accrued as per Accounting Policy consistently followed by assessee as on 31.3.1998 and accordingly to allow said claim to that extent - appeal is allowed for statistical purposes
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