TMI Blog2015 (2) TMI 1073X X X X Extracts X X X X X X X X Extracts X X X X ..... he year can be allowed as deduction provided such debt or part thereof was taken into account in computing the income of the assessee for this year or an earlier year. Unless such debt is taken into consideration in the computation of total income, there can be no question of allowing deduction on its becoming irrecoverable or on a mere write off. As necessary facts of this issue are not available and the ld. CIT(A) has simply accepted the assessee's claim without going into the deductibility of this amount as per law in terms of above discussion, we set aside the impugned order and remit the matter to the file of AO for deciding this issue afresh in conformity with our above observations. Needless to say, the assessee will extend full co-o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06-07, 2007-08 and 2008-09. For the sake of convenience, we have clubbed these appeals for disposal. 2. The only issue raised by the Revenue in its appeal is against the allowing of deduction of ₹ 1,84,40,253/- on account of bad debts written off. 3. Briefly stated, the facts of the case are that the assessee, during the course of assessment proceedings, made out a claim, vide letter dated 23.12.2008 that deduction for bad debts written off amounting to ₹ 1,84,40,253/- be allowed. The AO rejected such claim on the premise that such a new claim could have been made only by means of the revised return within the time permissible u/s 139(5). Since such time had elapsed, the AO refused to grant any such deduction. The ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year, etc. A conjoint reading of section 36(1)(vii) and section 36(2) makes it abundantly clear that any amount of bad debt written off during the year can be allowed as deduction provided such debt or part thereof was taken into account in computing the income of the assessee for this year or an earlier year. Unless such debt is taken into consideration in the computation of total income, there can be no question of allowing deduction on its becoming irrecoverable or on a mere write off. As necessary facts of this issue are not available and the ld. CIT(A) has simply accepted the assessee's claim without going into the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment order that the assessee did not furnish any details and anything about the otherwise deductibility of such provisions. Further, there is no elaborate discussion about these vital aspects in the impugned order. We, therefore, set aside the impugned order on this issue and remit the matter to the file of AO for a fresh determination of the same as per law, after allowing a reasonable opportunity of being heard to the assessee. 9. In the result, the appeal is allowed for statistical purposes. Assessment Year 2008-09 10. The only issue raised in this appeal is against the deletion of addition of ₹ 10,69,25,323/- on account of bad debts written off. 11. Briefly stated, the facts of this ground are that the assessee c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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