2009 (8) TMI 54

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..... er Section 36(1)(vii) on the ground that the assessee had claimed deductions under Section 80HHC and in such a situation claim for bad debts will be hit by Section 14A of the Act. The CIT(A) partly upheld the claim of the assessee – ITAT upheld the order of CIT(A) – Held that - On perusal of Section 80HHC and Section 14A, it is clear that expenditure incurred from export income cannot be held to b .....

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..... Income Tax Appellate Tribunal was justified in restricting the addition of Rs.8,37,978/- instead of Rs.29,25,622/- made by the Assessing Officer in view of the provisions of Section 14A of the Income Tax Act, 1961 by disallowing the deduction claimed on account of 'Bad Debts' written off u/s 36(1)(vii) of the I.T.Act, 1961 as these 'Bad Debts" written off included incomes not received, which were .....

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..... f all, this amount cannot be said to be expenditure incurred for earning some income which do not form part of total income of the appellant. Such incomes are generally incomes enumerated in section 10 of the Act. Clearly, the income earned by the appellant from the export sales could not be said to be income which do not form part of the total income. Even otherwise, as rightly pointed out by the .....

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