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TMI Blog2017 (4) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - I.T.A.No.16/Mds./2017 - - - Dated:- 12-4-2017 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G.PAVAN KUMAR, JUDICIAL MEMBER For The Appellant : Mr.A.V.Sreekanth,JCIT,D.R For The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dice, the Ld. CIT(A) has erred in law in allowing the claim without appreciating that the decision of Supreme Court in the case of M/s. TRF Ltd vs CIT 190 Taxmann 391(SC) and also CBDT Circular 12/2016 dated 30.05.2016 require that the condition under subsection (2) of Section 36 should be satisfied that such debt which is written off should have been taken into account in computing the income of the previous or earlier previous years. 3. The brief facts of the case are that the assessee had given written off bad debts/advances to the extent of ₹ 65.30 lakhs and had also deducted ₹ 1,21,22,601/- as bad debts without charging the same to P L a/c. The main contention of the ld.A.R before lower authorities is that the bad debts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Against this, the Revenue is in appeal before us. 4. We have heard both the parties and perused the material on record. The main contention of the ld.A.R is that the assessee has followed the same method of accounting to write off its bad debts from year to year. In other way, it was explained by the ld.A.R that the assessee made provisions in each year towards bad and doubtful debts as follows:- Profit and Loss A/c. Dr. xxx To Provision for bad and doubtful debts Cr. xxx Thus, provisions for bad debts was deducted from total debts in the balance sheet and also the same amount was charged to P L A/c as an expenditure, when the above provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed deduction on account of bad debts in assessment year 2004-05. Thus, there is no double deduction claimed by the assessee or any apprehension that the assessee might claim double deduction. In such circumstances, the claim of the assessee deserves to be accepted. It is also opined that if the claim of the assessee is not allowed, then it would amount to double taxation of the same income because the sum of ₹ 70,00,000, of which ₹ 20,36,000 is a part, had already been debited to the profit and loss account in assessment year 2004- 05 but added in the computation of total income for that year. In the light of the discussion as above, if is held that the claim of the assessee for deduction on account of bad debts has to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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