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TMI Blog2012 (7) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... wo conditions are required to be satisfied for claiming deduction for bad debts; one is that it should have been part of income in the earlier year and that it should be existing and it should be written off in the books of accounts. Since both these conditions are fulfilled in this case, ld. CIT(A) has rightly allowed the claim of the bad debts of the assessee – In favor of assessee - I.T.A. No.1639/Ahd/2009 - - - Dated:- 6-6-2012 - Shri D.K. Tyagi, and Shri T.R. Meena, JJ. Department by : Ms. Surabhi Sharma Sr. D.R. Assessee by : Shri Tushar P. Hemani, A.R. ORDER PER : D.K. TYAGI, JUDICIAL MEMBER This is Revenue s appeal against the order of ld. CIT(A)-1, Surat dated 16.03.2009. 2. The Revenue has taken fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ethod of accounting and thereafter prepared adjustments u/s 145A regularly. After perusing these two tax audited reports, ld. CIT(A) found that assessee s claim was correct. Since this adjustment is as per the provision of Income Tax Act and if the same is positive, the addition is made to the total income and if the adjustment is negative then it is deducted from the total income, we find no infirmity in the order of ld. CIT(A) in holding that the claim of the assessee was correct and therefore the order passed by him is hereby upheld. 5. This ground of the Revenue is dismissed. 6. Second ground relates to addition of Rs.6,67,233/- made on account of bad debts by the A.O. which has been deleted by ld. CIT(A). During the assessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been admitted by the A.O. and the same have been now written off in their books of accounts and this is sufficient for claiming deduction for bad debts as per the decision of Hon ble Apex Court in the case of TRF Ltd. Vs. CIT (323 ITR 397 (SC) Ld. CIT(A) has found this contention of the assessee to be acceptable. As only two conditions are required to be satisfied for claiming deduction for bad debts; one is that it should have been part of income in the earlier year and that it should be existing and it should be written off in the books of accounts. Since both these conditions are fulfilled in this case, ld. CIT(A) has rightly allowed the claim of the bad debts of the assessee and the order passed by him is hereby upheld. This ground of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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