9911796707
TMI Blog2012 (8) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... ight in disallowing the claim of the appellant for deduction of Rs.36,22,691/- being receivables arising in the course of business which have become irrecoverable and reduced from the profits for the year? " 2. The assessee herein is a non-banking finance company, engaged in the business of hire purchase financing and equipment leasing. While completing the the assessment under Section 143(3), the Assessing Officer disallowed the provision for doubtful debts on the ground that the assessee would be entitled to the relief only in respect of the doubtful debts actually written off in the accounts as against the provisions made. Aggrieved by the assessment, the assessee went on appeal before the Commissioner of Income Tax (Appeals). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the balance sheet as on 31.3.1995 would be of any relevance in respect of the assessment year 1994-95. The discussion in the order proceeds from the details available in the balance sheet pertaining to the period as on 31.3.1993. 5. Learned counsel appearing for the assessee also placed reliance on the decision reported in [2010] 323 ITR 166 (Vijaya Bank Vs. Commissioner of Income Tax) and pointed out that when the assessee had debited the profit and loss account, the doubtful debts are simultaneously taken to the balance sheet, bringing the reduction on the assets side. Thus the facts of the case fit in with the law declared by the Apex Court in the decision reported in [2010] 323 ITR 166 (Vijaya Bank Vs. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assets side of the balance sheet, then the assessee would be entitled to succeed in its claim. However, given the fact that the assessee had claimed as a provision in the accounts to the tune of Rs.57,93,447/-, the assessee is not entitled to the benefit of the decision for the entire amount as claimed by the assessee. Consequently, the assessee is not entitled to succeed. Hence the challenge. 8. Heard learned counsel appearing for the assessee and the learned Standing Counsel appearing for the Revenue and perused the material placed on record. 9. A perusal of the Apex Court reported in [2010] 323 ITR 166 (Vijaya Bank Vs. Commissioner of Income Tax) shows that the law declared by the Gujarat High Court reported in [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s thus available in the balance sheet on the assets side as on 01.04.1992 was to a balance of Rs.57,93,457/-. Looking the total provision at the end of 31.03.1993 of Rs.79,73,725/- (Rs.43,51,034/- + Rs.36,22,691/-), effectively, the assessee seems to have written off the bad debts only to the extent of Rs.21,80,278/-. Since these are the figures culled out from the papers given by the assessee in respect of the assessment year 1993-94, the question of how much of an amount had actually been written off has to be seen only by the Assessing Authority by looking into the accounts of the assessee. The balance sheet, being a summation of the account results, we feel, the proper course herein would be to set aside the order of the Tribunal and re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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