9911796707
|
Home
Issues involved: Appeal by Revenue against deletion of addition of bad debts written off in assessment u/s 143(3) read with section 147 of the Income Tax Act, 1961 for the assessment year 2001-02.
The Appellate Tribunal, ITAT Chennai, heard the appeal filed by the Revenue against the order of CIT(A)- (Large Taxpayer Unit) at Chennai dated 28.04.2010. The appeal was related to the addition of &8377; 9,65,49,749/- being the disallowance of bad debts written off in respect of assessee's transaction with M/s. ETK Soft tech Pvt. Ltd. The Revenue contended that the CIT(A) erred in deleting this addition. However, citing precedents such as the decision of ITAT, Mumbai, Special Bench in the case of DCIT Vs. Oman International Bank (SAOG) [2006]286 ITR (2008) 08 (AT) (SB) (Mum.) and subsequent rulings by the Hon'ble Bombay High Court and the Supreme Court in various cases, it was established that if bad debts are written off as irrecoverable in the books of account, the deduction is allowable in computing the taxable income. The Tribunal noted that the conditions for claiming deduction towards bad debts were met by the assessee in this case, and hence, the appeal filed by the Revenue was deemed liable to be dismissed. Decision: The appeal filed by the Revenue was dismissed by the Appellate Tribunal, ITAT Chennai, based on the established legal principles and precedents regarding the deduction of bad debts written off as irrecoverable in the books of account.
|
