TMI Blog2015 (6) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... tutory provision, the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. An assessee is entitled to raise not merely additional legal submissions before the appellate authorities but is also entitled to raise additional claims before them. The appellate authorities have the discretion whether or not to permit such additional 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 rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 30,00,000/- as provision for doubtful debts in P L account. This amount was not disallowed while filing the return of income. The assessee during the year 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 during assessment proceedings was rejected by A.O., as the assessee had not filed any revised ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of accounts though claim was rejected by the A.O. on the ground that appellant had not filed the revised return. Following the decision of Goetze (India) P Ltd. on examination of the details, as appellant is eligible for the claim of bad debts, appellant claim is allowed. The A.O. is directed to allow the claim of bad debts to the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s before them. The appellate authorities have the discretion whether or not to permit such additional 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 been raised must be construed liberally and not strictly. It is open to the assessee to claim a deduction before the appellate authority which could not have b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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