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2017 (4) TMI 956 - ITAT CHENNAIClaim of bad debts - D.R submitted that there is no evidence produced by the assessee to the fact that bad debts written off in earlier years were offered for taxation in the computation of income of those years - Held that:- We find force in the argument of ld.D.R When originally assessee passed the entry as above, the assessee cannot claim deduction as it is only of provisions for bad and doubtful debts. When the assessee has actually written off debts by crediting the individual account by reversing the provisions, the assessee can claim bad debts, though it was not routed through P&L A/c in assessment year under consideration as that was already over, in earlier A.Y, when the bad debts written off through provisions of bad and doubtful and offered to taxation in earlier year adding the same to income. Hence, with this observation, we remit the issue to the file of AO to examine whether the assessee has offered for taxation the provisions made in earlier year to taxation by adding the same to the income of assessee in computation of income for the relevant to assessment year. Hence, this ground raised by Revenue is allowed for statistical purposes.
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