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2014 (1) TMI 1184 - ITAT MUMBAIValidity of deduction u/s 36(1)(vii) of the Act – Bad debts - Held that:- The decision in TRF Ltd. vs. CIT [2010 (2) TMI 211 - SUPREME COURT] followed - it is no longer necessary for the assessee to establish the irrecoverability of the debt written off to validate its claim qua the same u/s.36(1)(vii) of the Act - The write off of the sum as irrecoverable by the assessee in its accounts, or the bona fides, is not in doubt or dispute – When bad debt occurs, the bad debt account is debited and the customer’s account is credited, thus, closing the account of the customer. In the case of Companies, the provision is deducted from Sundry Debtors - Absence of any examination of the assessee's claim in respect of the said sum, which would fall for consideration u/s. 37(1) of the Act – this aspect of the matter needs to be re-adjudicated - the issue id remitted back to the AO for fresh adjudication – Decided partly in favour of Assessee.
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