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2010 (12) TMI 431 - ITAT, LUCKNOWAddition - Bad debts - Held that:- the ld. CIT(A) was fully justified in directing the AO to allow the claim of the assessee by following the judgment of the Hon'ble Apex Court delivered on 9.2.2010 in the case of T.R.F. Ltd. vs. CIT [2010 -TMI - 76626 - SUPREME COURT ],wherein it has been held as under: After the amendment of section 36(1)(vii) of the Income-tax Act, 1961, with effect from April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable : it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee - Decided in favour of assessee. Commission on export sales - Prior period - On a similar issue, the Hon'ble Gujarat High Court in the case of Saurashtra Cement and Chemical Industries Ltd. vs. CIT(1994 -TMI - 19446 - GUJARAT High Court) has held as under: Merely because an expense relates to a transaction of an earlier year it does not become a liability payable in the earlier year unless it can be said that the liability was determined and crystallized in the year in question on the basis of maintaining accounts on the mercantile basis - Hence, the liability for payment of commission was determined and crystallized during the year under consideration - Therefore, the same was allowable. Loss claimed on exchange rate difference - Since the exchange fluctuation occurred on realisation of export sales during the year under consideration so it was allowable business expenditure - Decided in favour of assessee.
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