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2017 (2) TMI 1010 - AT - Income TaxDeduction for bad debts u/s.36(1)(vii) - deduction was never claimed nor allowed in earlier year - CIT-A allowed claim - Held that:- According to the entries, the assessee was found eligible for deduction of bad debts invoking of provision u/s.36(1)(vii) of the Act. According to the provision of 36(1)(vii) of the Act the P&L A/c. has been debited and the debtors account credit that amount of bad debts written off. The CIT(A) also find support of law support by the Hon’ble Delhi Tribunal in the case of Jain Co-op. Bank Ltd. in which it is specifically held that the provision created prior to A.Y.2007-08, not claimed as a deduction, could not be taxed when written back. Therefore, the assessee has rightly reduced the said amount in its computation of income. The CIT(A) has passed the order in view of the above mentioned case. No contrary law of any kind was produced before us to distinguish the facts of the case on record. In view of the said circumstances, we are of the view that the CIT(A) has passed the order judiciously and correctly which is not require to be interfere with at this appellate stage. - Decided against revenue
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