Bad debt deduction dispute was covered by binding precedent despite retrospective amendment, defeating the Revenue's challenge.

The Department's challenge was held to be covered by an earlier binding decision on the treatment of bad debts and the effect of the retrospective amendment to Section 115JA of the Income-tax Act, 1961. The Court noted that no fresh substantial question arose on the issue urged by the Revenue, as the point had already been decided against it by precedent. The retrospective amendment and the principles governing write-off of bad debts and deduction were considered, but they did not alter the binding effect of the earlier ruling. The issue was answered against the Revenue and in favour of the assessee.

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Issues: Whether the Department's challenge was covered against it by the earlier decision on the treatment of bad debts and the effect of the retrospective amendment to the tax provision.

Analysis: The petition raised no fresh substantial question on the point that the subject issue had already been decided against the Department in the earlier binding decision. The retrospective amendment to Section 115JA of the Income-tax Act, 1961 and the principles concerning write-off of bad debts and deduction were noted, but the Court found that the issue urged by the Department stood covered by precedent.

Conclusion: The issue was answered against the Revenue and in favour of the assessee.

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