Tribunal allows appeal, directs deletion of disallowed bad debts, remands issue for further adjudication.

The Tribunal allowed the appeal by the assessee for statistical purposes, directing the deletion of the disallowed amounts of bad debts and remanding one issue back to the CIT(A) for proper adjudication.

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Issues:
Delay in filing appeal for condonation, Disallowance of bad debts claimed by the assessee

Delay in filing appeal for condonation:
The assessee filed an appeal challenging an order passed under section 250 of the Income Tax Act, 1961, for the assessment year 2013-14. The appeal was delayed by 1395 days, and the assessee sought condonation of delay due to various reasons, including the demise of the Chartered Accountant handling the tax matters, health issues faced by the assessee, and lack of awareness about the impugned order. The Tribunal, after considering the submissions and affidavit filed by the assessee, found sufficient cause for condonation of delay as per the parameters laid down by the Supreme Court. The Tribunal emphasized that rules of procedure are meant to serve justice and decided to proceed with the appeal on merits after condoning the delay.

Disallowance of bad debts claimed by the assessee:
The assessee claimed bad debts of Rs. 6.82,855 in the assessment year. The Assessing Officer disallowed Rs. 4 lakh claimed as bad debts, stating it was not in the nature of revenue expenditure/income and did not satisfy the conditions of section 36(2) of the Act. The CIT(A) upheld the AO's decision. However, during the hearing, it was revealed that the Rs. 4 lakh loan was recovered in the subsequent year and offered for taxation, leading to double disallowance. The Tribunal directed the AO to delete the addition of Rs. 4 lakh. Another issue involved the disallowance of Rs. 2,82,855 claimed as bad debts by the assessee. The AO disallowed this amount as well, and the CIT(A) dismissed the appeal without providing any reasons or basis for the decision. The Tribunal, citing the requirement of recording reasons for orders, remanded this issue back to the CIT(A) for fresh adjudication, emphasizing the importance of self-explanatory orders to prevent arbitrariness. The Tribunal allowed this ground for statistical purposes.

In conclusion, the Tribunal allowed the appeal by the assessee for statistical purposes, directing the deletion of the disallowed amounts of bad debts and remanding one issue back to the CIT(A) for proper adjudication.

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