9911796707
TMI Blog2017 (9) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... Order for the Assessment Year 2006-07, a copy of which is produced as Annexure-A, the assessee has claimed an amount of Rs. 1,16,521/- as prior period expenses in the Profit and Loss Account. On verification, the Assessing Officer found that the amount represented expenses pertaining to the previous year which was written off in the Assessment Year in question. On the ground that the assessee could not explain when the amount of expenses crystallized, the Assessing Officer held that the expense was not incurred during the previous year relevant to the Assessment Year and hence, cannot be allowed as business expense. Accordingly, the claim of the assessee was disallowed and assessment was completed. 2. In the appeal filed before the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also not accepted because details of the debt were not produced. The Tribunal also upheld the order passed by the lower authorities. It is in this background, this appeal is filed and the questions of law framed are the following: a) Whether on the facts and in the circumstances of the case the Appellate Tribunal was right in law in rejecting the claim for deduction of Rs. 1,16,521/- as a revenue expenditure/bad debt which has been written off from the books of accounts for financial year 2005-06, relevant to the assessment year 2006-07? b) The Appellant having already been assessed on the brokerage income from the shares and the amount written off as bad debt being amount receivable from customers, is not the claim for bad debts le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is written off as irrecoverable in the accounts of the assessee for the previous year shall be allowed as a deduction in computing the income referred to in Section 28. However, Clause-(i) of sub-section-(2) provides that, in making any deduction for bad debt or part thereof, no such deduction shall be allowed unless such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year. 7. This therefore, means that the assessee has to prove satisfaction of both Section 36(1)(vii) and Section 36 (2)(i), viz. that the bad debt has been written off and that the bad debt has been taken into account in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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