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Income Tax Officer-10 (2) (4) , Mumbai Versus M/s. Hathway Rajesh Multi Channel Pvt. Ltd.,

2015 (6) TMI 1064 - ITAT MUMBAI

Powers of the appellate authorities to entertain claim by way of additional ground - Claim of bad debts written off - Held that:- Hon’ble Bombay High Court in the case of ‘Pruthvi Brokers & Shareholders Pvt. Ltd.’ (2012 (7) TMI 158 - BOMBAY HIGH COURT ), wherein the Hon’ble Bombay High Court, while relying upon the various decisions of the Hon’ble Supreme Court and other Hon’ble High Courts, has held that even if a claim is not made before the AO it can be made before the appellate authorities. .....

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ditional claims to be raised. It cannot, however, be said that they have no jurisdiction to consider the same. The appellate authorities have jurisdiction to deal not merely with additional grounds which became available on account of change of circumstances or law, but with additional grounds which were available when the return was filed but could not have been raised at that stage or the grounds which became available on account of change of circumstances or law. The words ‘could not have bee .....

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der dated 06.08.2013 of the Commissioner of Income Tax (Appeals) [(hereinafter referred to as CIT(A)] relevant to assessment year 2010-11. Despite service of notice, no one has come present on behalf of the assessee, hence, the matter has been heard ex-parte. The Revenue through its grounds of appeal has contested the decision of the Ld. CIT(A) in allowing the claim of bad debts written off. 2. The facts of the case are that the assessee is engaged in the business of Cable Operator and ISP servi .....

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r had written off bad debts for ₹ 35,68,583/-. But this amount was not debited in the P&L account as it was already debited in the previous year in the P&L account. These bad debt of ₹ 35,68,583/- was written off in debtors account. The Assessing Officer (hereinafter referred to as the AO) disallowed provision of bad debts for ₹ 30,00,000/- which the assessee had not disallowed while filing the return of income. Similarly the bad debt claim which the assessee claimed du .....

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not allowed this during the assessment proceedings. Consequently if the appellant claims bad debts, if it is written off in the books of account then it is eligible to claim deduction u/s.36(1)(vii). This view is supported by the Supreme Court decision in the case of T.R.F. Ltd. vs. CIT 323 ITR 397. But here the question arising is that if appellant had not claimed the deduction while filing the return, if the claims is made before the A.O, during the assessment proceedings can appellant's b .....

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ere in it is held that "even assuming that the Assessing Of is not entitled to grant a deduction on the basis of a letter requesting an amendment to the return filed, the appellate authorities are entitled to consider the claim and to adjudicate the same. It is not necessary that the deduction be allowed only if a revised return of income would have been filed". Following the above decision, appellant is eligible for claim of bad debts u/s.36(1)(vii) as it has written off in the books .....

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decision of Hon ble Bombay High Court in the case of Pruthvi Brokers & Shareholders Pvt. Ltd. (supra), wherein the Hon ble Bombay High Court, while relying upon the various decisions of the Hon ble Supreme Court and other Hon ble High Courts, has held that even if a claim is not made before the AO it can be made before the appellate authorities. The jurisdiction of the appellate authorities to entertain such a claim is not barred. The Hon ble Bombay High Court while relying upon the decision .....

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