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2014 (7) TMI 1063 - ITAT AHMEDABADClaim of bad debts - Held that:- CIT(A) was rightly of the view that the Chartered Accountant has given a certificate mentioning that all the bad debts written off are relating to trade of the Company and income referring to those has been offered for tax in earlier years and impugned debts have been written off in the year – Relying upon TRF. LTD. Versus COMMISSIONER OF INCOME-TAX [2010 (2) TMI 211 - SUPREME COURT] - 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 against Revenue. Prior paid expenses – Held that:- CIT(A) rightly of the view that the assessee rightly submitted that “out of ₹ 4.8 lacs, ₹ 1,690,585/- relate to purchases of components, the same entering the stocks during the year upon the purchases made, cannot be considered as disallowable prior period expenses and there is another identical amount ₹ 90,134/- of Courrier DHL Worldwide, which amount had been in dispute was ultimately settled towards the end of the year and considered as expenditure upon settlement and payment and can be considered as occurring only during the year – the order of the CIT(A) is upheld – Decided against Revenue.
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