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TMI Blog2011 (3) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... e bad which is written off is admissible and no provision for bad and doubtful debt is admissible as expenditure under Section 36 (1)(vii) of the Act - The Tribunal had thus erred in reversing the order of CIT(A) and allowing the provision for bad and doubtful debt as expense under Section 36(1)(vii) of the Act - answered in favour of the revenue. - 324 of 2004 - - - Dated:- 28-3-2011 - MR.J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 36(I)(vii) of the Act are not fulfilled? 2. The facts as narrated in the appeal necessary for adjudication for the present appeal may be noticed. The assessee had filed return declaring loss of Rs.5,12,29,870/- on 29.12.1992. However, the assessment was framed under Section 143(3) of the Act on 28.2.1995 at nil income. The Assessing Officer amongst other disallowances had made a di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. According to the learned counsel, Explanation to Section 36(1)(vii) inserted by Finance Act, 2001 retrospectively with effect from 1.4.1989 provided that provision for bad and doubtful debts was inadmissible as expense and the debt which had become bad and doubtful alone could be claimed as deduction. It was further urged that such bad and doubtful debt had to be written off with rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... become bad which is written off is admissible and no provision for bad and doubtful debt is admissible as expenditure under Section 36 (1)(vii) of the Act. The Tribunal had thus erred in reversing the order of CIT(A) and allowing the provision for bad and doubtful debt as expense under Section 36(1)(vii) of the Act. 7. In view of the above, the appeal is allowed and substantial question of law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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