Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
PCIT's view that section 36 allows deduction only for bad and doubtful debts, not for provision on standard assets, was challenged. AR presented case laws allowing deduction u/s 36(1)(viia) for entire provision including standard assets as per RBI circular. DR agreed it's a debatable issue. AO allowed deduction after verifying details, taking a possible view. PCIT contended AO didn't inquire into allowability of deduction on standard assets, but it was found AO raised query and assessee replied. Mere non-mentioning of accepted issues in order doesn't mean no inquiry. PCIT didn't show deduction was erroneously claimed or any error prejudicial to revenue. Following Malabar Industrial case, PCIT's conclusion of erroneous order was held untenable and quashed. Assessee's appeal allowed.
PCIT's view that section 36 allows deduction only for bad and doubtful debts, not for provision on standard assets, was challenged. AR presented case laws allowing deduction u/s 36(1)(viia) for entire provision including standard assets as per RBI circular. DR agreed it's a debatable issue. AO allowed deduction after verifying details, taking a possible view. PCIT contended AO didn't inquire into allowability of deduction on standard assets, but it was found AO raised query and assessee replied. Mere non-mentioning of accepted issues in order doesn't mean no inquiry. PCIT didn't show deduction was erroneously claimed or any error prejudicial to revenue. Following Malabar Industrial case, PCIT's conclusion of erroneous order was held untenable and quashed. Assessee's appeal allowed.
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