The case involves rectification u/s 154 for disallowance of bad ...

Issues regarding provision of bad debts not recorded in books of account. Rectification under sec. 154 allowed. Decision upheld by Tribunal.

Case Laws Income Tax

June 20, 2024

The case involves rectification u/s 154 for disallowance of bad debts provisions u/s 36(1)(viia) in a co-operative bank's computation sheet. ITAT held that the mistake was apparent as the provision was not in the books. CIT(A) noted rectification requires a glaring mistake of law. ITAT found the claim ineligible and rectified u/s 154. CIT(A) noted a similar deduction in a subsequent year but the provision was duly accounted for. AR argued for deduction based on Companies Act provisions, but ITAT found no support for allowing the claim if not in books. Following precedent, ITAT remitted the matter to AO to allow deduction based on actual provision made in books. Revenue's appeal partly allowed for statistical purposes.

View Source

← Previous Next →

The case involves rectification u/s 154 for disallowance of bad ...

Issues regarding provision of bad debts not recorded in books of account. Rectification under sec. 154 allowed. Decision upheld by Tribunal.

Case Laws Income Tax

June 20, 2024

You may also like:

Provision for bad and doubtful debts u/s 36(1)(viia) against the advances of rural branches - The circular mentions that the provisions of new clause (viia) of section...

Disallowance of bad debts written off - Admittedly, the provision was created by the assessee in the earlier year out of the profit and loss account. Thus, any...

Disallowance of bad debts u/s 36(1) - The non-realisation of debt can result in bad debt written off if the same is written off in the books. Since it is not the case...

Bad Debts - once the deduction made by the clients account is debited and the assessee’s accounts are credited, the conditions laid down by section 36(1)(vii) read with...

Power of ITAT u/s 254 - Addition on account of bad debt deleted - Tribunal has committed no illegality in upholding the finding of fact recorded by the commissioner...

MAT - Deduction for provision of bad and doubtful debts while computing book profits u/s.115JB - There is absolutely no quarrel that the case does not fall under Clause...

Disallowance of provision for Bad Debt Written off - provision made by the assessee for bad and doubtful debts is only a provision, but not actual written off of bad...

MAT Computation - Even if the provision for doubtful debt is added back to the net profits, the resultant book profit is still negative and even though the assessee was...

MAT Computation - even if the provision for doubtful debt is added back to the net profits, the resultant book profit is still negative and even though the assessee was...

Bad Debts - Loans advanced to the Group Company utilized for purchase of properties and shares - The High court holds that it's not necessary for the assessee to...

Deduction u/s 36(1)(viia) of the Act - Provision for bad and doubtful debts - provision for bad and doubtful debts newly created during the year under consideration...

Dead loss v/s bad debts - investment made by the assessee in a sister concern for purchase of equity shares which into liquidation - ITAT has not recorded a specific...

A bank is eligible to claim deduction towards provision for bad and doubtful debts u/s 36(1)(viia), irrespective of whether it has rural or non-rural advances. The...

Disallowance of contingency expenses claimed by the assessee. The Assessing Officer (AO) disallowed the contingency expenses despite acknowledging that the total cost...

Bad debts claimed u/s 36(2)(i) - Assessee debited ‘Amount written off paid against advance of land’ - As per accounting policy and general business practice any nature...

Quick Updates: