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TMI Blog2021 (9) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance of Rs. 4,44,994/- on account of "bad -debts written-off even when the assessed had failed to prove that the amount was actually trading liability and the corresponding amount was actually offered as income in earlier years and without considering the provisions of Section 36(1)(vii) and Section 36(2) of the Income Tax Act, 1961 ( hereinafter referred as "the Act"? 2. Whether on the facts and circumstances of the case, the Ld.CIT(A) is legally justified in deleting the addition of Rs. 4,44,994/- u/s 36(1) (vii) of the Act by ignoring the procedure prescribed by Hon'ble Apex Court for write off an amount as irrecoverable in the case of TRF Ltd. vs. CIT (2010) 190 Taxman 391 (SC)? 3. Whether on the facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 015 determining the total income of the Assessee at Rs. 1,52,86,65,220/-. The ld AO disallowed the bad debt amounting to Rs. 4,44,994/-, disallowance of other incidental charges on works amounting to Rs. 76,50,97,493/- and disallowances of provisions written back of Rs. 8,48,30,839/-. 4. The Assessee preferred an appeal before the ld CIT(A)-33, New Delhi who passed an order, allowing the appeal of the Assessee and deleting the addition partially. Therefore, the revenue is aggrieved and has preferred this appeal. 5. The ld DR arguing the above appeal relied heavily on the order of the ld AO whereas the ld AR submitted that all the issues involved in this appeal are covered by the order of the coordinate bench in Assessee‟s own case f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above sum, debts are already taken into income in earlier years, it is allowable. Nothing new was argued by the ld DR and the ld AR also reiterated the arguments before the ld CIT(A). We find that when the assessee has written off a debt in its books of account, which was taken into computation of income in earlier years, it satisfied all the characteristic of allowable bad debt u/s 36(2) of the Act. In view of this we do not find any infirmity in the order of the ld CIT(A) in allowing the claim of bad debt written off of Rs. 2,72,49,141/- and dismiss the ground No. 1 and 2 of the appeal." 8. We confirm the order of the ld CIT(A) deleting the above disallowance of Rs. 444994/-. 9. The ground No.3 is with respect to the disallowance of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice connection charges and miscellaneous expenditure amounting to Rs. 113.50 crores. This work was carried out on behalf of the Ministry of Home Affairs. As per work order (MOU) the assessee was required to acquire the land for the project and execute the contract. All the expenditures have been incurred by the assessee on the project and corresponding income of that project has already been offered for taxation. In view of this, the ld CIT(A) held that the above expenditure of the assessee is of revenue in nature and hence deleted the disallowances. We find that the assessee is a contractor, who according to terms of the contract was to acquire the land, create electricity infrastructure thereon and then handover the project after executio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that assessee has failed to give the information. Claim of the assessee is that above provision which is written back during the year cannot be charged to taxed for the reason that the year in which the provision was created , it was already disallowed and in that year the assessee did not claim the above provision as allowable expenditure. Thus, according to the assessee when the original provision was created it was not claimed as deduction but was disallowed in the computation of income itself. Therefore, when the above provision is written back in this year it cannot be once again charged to tax. The ld AO disallowed the above provision. Before the ld CIT(A) the above claim was contested and the computation of income for last three ..... X X X X Extracts X X X X X X X X Extracts X X X X
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