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TMI Blog2018 (7) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... e and will be applicable w.e.f. 1st April, 2015 only and will not be applicable to earlier Assessment Years. Since the present appeal before us pertains to the A.Y. 2010-11, the issue stands covered in favour of the assessee Provision for bad and doubtful debts - Held that:- This issue is also covered in favour of assessee by the judgement of Hon’ble Delhi High Court in the case of DIT(E) vs. National Association of Software and Services Companies (2012 (5) TMI 204 - DELHI HIGH COURT) Tribunal was right in law in holding that the provision for doubtful debts must be deducted from the income of the trust on commercial principles, for the purposes of Section 11(1)(a) of the Act - Decided in favour of the assessee - ITA No. 2555/Del/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. That the appellant craves leave to add , delete or amend any of the ground of appeal on or before the disposal of the present appeal. 2. Brief facts of the case are that the assessee is a Charitable Society registered under the Societies Registration Act, 1860 and is also registered u/s 12AA(1) of the Income Tax Act, 1961 ( the Act', for short). The assessee is running a renowned cancer hospital in Rohini, Delhi in the name of Rajiv Gandhi Cancer Institute. The assessee is a charitable society and income is exempt u/s 11(1) of the Act. The assessee has also got approval u/s 10(23)(VI)(a) of the Act. During the year the assessee had claimed depreciation of ₹ 6,52,45,727/- which was disallowed by the A.O. on the ground tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd was not being pressed in view of the huge losses of the assessee Society. 4. In response, the Ld. SR. D.R. placed reliance on the concurrent findings of both the lower authorities and vehemently argued that the findings of both the lower authorities had been given after due consideration of the facts and it was submitted that no interference was called for. 5. We have heard the rival submissions and also perused material on record. Although, the Ld. Sr. D.R. has argued vehemently against the two issues under challenge, she was not able to negate the fact that the issue of depreciation is squarely covered in favour of the assessee in assessee s own case by the judgement of Hon ble Delhi High Court in case of DIT(E) vs. Indraprastha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act but should be computed in accordance with commercial principles and it is on this footing that the payment of Income Tax Act under the VDIS was treated as a deduction and as proper application of the income of the trust. The same line of reasoning holds good for the provision for bad and doubtful debts. Even under the computation provision of the Act such a provision was considered allowable up to and including the assessment year 1988-89 and it was only from the assessment year 1989-90 that the Act required that a mere provision would not be allowable as a deduction and the actual writing off of the debt was a necessary pre-condition. Be that as it may, under the commercial principles it has always been recognized that a prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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