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| The Tax Publishers2019 TaxPub(DT) 2687 (Bang-Trib) INCOME TAX ACT, 1961
Section 36(1)(viia)
Where the assessee had actually not written off the bad debts in its books of account and had continued to show the same on the assets side of the balance sheet, he would not be entitled to any deduction under section 36(1)(viia).
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Business deduction under section 36(1)(viia) - Provision for bad and doubtful debts - Bad debts not written off in assessee's books of account -
AO disallowed the provision for bad and doubtful debts alleging that assessee had not written off the debts in its books of account and was still showing the debts as balance in the asset side of the balance sheet. Held: For the purposes of claiming deduction the assessee should have actually written off the bad debts exceeding the threshold limit prescribed by the Act. In the instant case as the assessee had actually not written off the bad debts in its books of account and had continued to show the same on the assets side of the balance sheet, he was not entitled to any deduction under section 36(1)(viia).
Relied:M/s. Vijaya Bank v. CIT & Anr. (2010) 323 ITR 166 (SC) : 2010 TaxPub(DT) 1825 (SC),M/s. Southern Technologies Ltd. v. Jt. CIT, Coimbatore (2010) 320 ITR 577 (SC) : 2010 TaxPub(DT) 1302 (SC),Vithaldas H. Dhanjibhai Bardanwala v. CIT, Gujarat V (1981) 130 ITR 95 (Guj) : 1981 TaxPub(DT) 722 (Guj-HC),CIT v. Jwala Prasad Tiwari (1953) 24 ITR 537 (Bom) : 1953 TaxPub(DT) 114 (Bom-HC)
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2012-13
IN THE ITAT, BANGALORE BENCH
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