Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 198 - ITAT MUMBAIDeletion of disallowance on account of bad debt – AO was of the view that it is not only the requirement to write-off the amounts in the books of account but the assessee also has to establish that the debt has become bad which has not been done by the assessee. - Held that:- assessee had continuously shown in its account that there were non-recoveries of dues from customers, which were earlier shown as sales in books of account, owing to shipment defaults by the assessee on account of natural calamity in form of cyclone at Kandla in the year 1998 in which the assessee suffered a huge loss of goods lying at docks and the adjacent stores - Owing to this non-fulfillment of outstanding contracts, the assessee in the passage of time decided to write off these dues in the books of account, which were earlier offered as sales - Commissioner (Appeals) has recorded a very categorical finding that in the audited accounts for the financial year 1998-99 - Findings recorded by Commissioner (Appeals) is wholly in accordance with law as laid down by Hon'ble Supreme Court in TRF Limited [2010 (2) TMI 211 - SUPREME COURT] and the same is confirmed - Do not find any substance in ground raised by Revenue and, accordingly, same is treated as dismissed – Decided against Revenue. Bad Debt - Condition u/s 36(1)(vii) r/w 36(2) – Held that:- Amounts in question represented transactions made in F.Y. 1998-99 and subsequently were written off by the appellant in the books of account on account of non-recovery - Conditions of sec. 36(1)(vii) r/w section 36(2) are satisfied and the claim of the appellant as a bad debt deserves to be allowed.
|