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| The Tax Publishers2020 TaxPub(DT) 0564 (Mum-Trib) : (2020) 181 ITD 0322 INCOME TAX ACT, 1961
Section 263
Insofar as, bad debt written off was concerned, AO had discussed the issue in assessment order and after considering relevant facts and also, taking note of opening balance of provision for bad and doubtful debt account, allowed claim of bad debt written off, in respect of non-rural advances. Therefore, PCIT was incorrect in stating that AO ought to have conducted required enquiries and, therefore, assessment order could not be held as erroneous and prejudicial.
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Revision under section 263 - Erroneous and prejudicial order - Due enquiry conducted by AO as regards impugned issue -
PCIT invoked jurisdiction under section 263 and held that AO had not conducted required enquiries under section 36(1)(vii) & (viia), before allowing deductions towards bad debt written off, which rendered assessment order erroneous, insofar as it was prejudicial to the interest of revenue. Held: Insofar as, bad debt written off was concerned, AO had discussed the issue at para 7 of his assessment order and after considering relevant facts and also, taking note of opening balance of provision for bad and doubtful debt account, allowed claim of bad debt written off, in respect of non-rural advances. Therefore, PCIT was incorrect in stating that AO ought to have conducted required enquiries and, therefore, assessment order could not be held as erroneous and prejudicial.
REFERRED :
FAVOUR : in assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 263
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