2008 (8) TMI 22

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..... plied by the AO is curious and not acceptable - assessee is not required to establish that the debt has become bad in the relevant previous year and it is sufficient for the purposes of claiming deduction on account of bad debts that the concerned debt had been written off as irrecoverable in the books.
Advocates who appeared in this case: For the Appellant : Ms Prem Lata Bansal CORAM:- HON' .....

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..... he said Act. 3. It may be relevant to note that in the return of income filed by the assessee a deduction of Rs 1,67,33,202/-was claimed by the assessee on account of bad debts written off. Out of this sum an amount of Rs 1,13,40,655/- was in respect of the government telephone department and the remaining amount was in respect of private parties. The Assessing Officer had disallowed the claim of .....

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..... erved that the assessee is not required to establish that the debt has become bad in the relevant previous year and it is sufficient for the purposes of claiming deduction on account of bad debts that the concerned debt had been written off as irrecoverable in the books of the assessee. The fact that the assessee had written off the said bad debts in its books is not controverted. 5. Consequently .....

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