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| The Tax Publishers2020 TaxPub(DT) 0073 (Chen-Trib) INCOME TAX ACT, 1961
Section 36(1)(viia)
Where Income Tax Act does not say that the amount due from Government cannot be written off and it was not in dispute that assessee had in fact written off the said amount due from Ministry of External Affairs. Therefore, claim of the assessee had to be allowed.
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Business deduction under section 36(1)(viia) - Provision for bad debts - Amount due from government written off -
Assessee was engaged in hotel business and claimed an amount as bad debts written off. The grievance of revenue was that an amount was due from Ministry of External Affairs, therefore, it could not be written off. Held: Income Tax Act does not say that the amount due from Government cannot be written off. What is to be seen is whether the assessee has written off the amount as irrecoverable. It is not in dispute that assessee had in fact written off the said amount due from Ministry of External Affairs. Therefore, claim of the assessee had to be allowed.
REFERRED : Redington (India) Ltd. v. Addl. CIT (2017) 392 ITR 633 (Mad) : 2017 TaxPub(DT) 0345 (Mad-HC) Exide Industries Ltd. & Anr. v. UOI & Ors. (2007) 292 ITR 470 (Cal) : 2007 TaxPub(DT) 1321 (Cal-HC)
FAVOUR : In assessee's favour
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 14A Rule 8D
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