TMI Blog2012 (9) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee regarding bad debts u/s 36(1)(vii) but while computing the income on the assessment order, he has made one addition with regard to excess depreciation. - HELD THAT:- Bad debt is allowable in the year of write off of bad debt and the assessee is not required to establish that the debt have actually become bad. Thus, no disallowance of bad debts is called for but this fact has to be ascertained by the A.O. as to whether any addition on this account was in fact made by the A.O. or not and if such addition was made then the same should be deleted. Decision in the case of TRF. LTD. VERSUS COMMISSIONER OF INCOME-TAX [ 2010 (2) TMI 211 - SUPREME COURT ], relied upon. - I.T.(SS). No. 227, 228, 229, 230, 231 & 232/Ahd/2010 - - - Dated:- 21-9-2012 - Shri A. K. GARODIA, ACCOUNTANT MEMBER and Shri KUL BHARAT, JUDICIAL MEMBER Appellant by: Shri Sakar Sharma, AR Respondent by: Shri Ravindra Kumar, CIT DR ORDER PER SHRI A. K. GARODIA, AM:- All these six appeals are filed by the assessee against six separate orders of Ld. CIT(A) IV, Ahmedabad all dated 14.12.2009 for the assessment years 2001-02 to 2006-07. All these appeals were heard together ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e A.O. in the assessment order passed by him u/s 153A:- Assessment year Income declared in original return u/s 139(1) Income declared in return filed u/s153A Excess Dep. Claimed in the return filed u/s 153A as compared to the original return Assessed income u/s 153A 2001-02 152400 24200 210186 362586 2002-03 317660 218320 162850 480510 2003-04 330540 262430 115426 445966 2004-05 1055830 1004940 115769 1171600 2005-06 1497460 1466890 69621 1567081 2006-07 1477450 1387740 104410 1581860 4. In reply to a query of the bench as to the assessment year for which the assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or not as per the provisions of Section 153A and if the same has not abated then, the income assessed as per the original return of income in the assessment completed prior to the date of search cannot be disturbed and only change which can be made is on the basis of material found in the course of search. In the present case, as per the ground of appeal raised by the assessee, there is no dispute regarding various additional incomes offered by the assessee himself as per the material found in the course of search and the A.O. has also accepted the same and the only dispute is regarding excess depreciation claimed by the assessee as per the return of income filed u/s 153A as compared to the depreciation claimed in the return of income filed u/s 139(1). One more dispute is there as to whether the A.O. is justified in making the assessment on the basis of return furnished u/s 139(1) instead of making assessment on the basis of return furnished u/s 153A of the Income tax Act, 1961. Ld. D.R. supported the orders of authorities below. 6. We have considered the rival submissions, perused the material on record and have gone through the orders of authorities below. We have already n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of excess depreciation claimed by the assessee. Accordingly, we direct the A.O. to recompute the income of the assessee in assessment years 2001-02 to 2004-05 by starting with the amount of income declared by the assessee in the return filed by it u/s 153A and making addition on account of excess depreciation claimed by the assessee in those four years in the return of income filed by the assessee u/s 153A as compared to depreciation claimed in the return of income filed by the assessee u/s 139(1). Ground No.1 of the assessee in all these four years is allowed whereas the remaining two grounds i.e. grounds No.2 3 in all these four years are rejected. 8. In the result, these four appeals of the assessee are partly allowed. 9. Now, we take up the appeal for the remaining two yeas i.e. appeals for the assessment years 2005-06 2006-07. 10. We have already noted that assessment of these two years have been abated on the date of search i.e. 19.09.2006 and therefore, for these two yeas, the A.O. has to decide the amount of depreciation allowable to the assessee as per law. In those two yeas, the A.O. has to start with the amount of income declared by the assessee in the retur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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