Service of notice and contractual debt acknowledgment preserved insolvency admission against a corporate guarantor despite limitation and natural just...
Original works exemption excludes standalone boulder transportation, leaving subcontracted railway-project transport services subject to service tax l...
Annual production capacity determinations excluding stenter galleries support refunds for unconstitutional excise levies without an unjust-enrichment ...
Vicarious liability for cheque dishonour requires specific allegations of responsibility and cheque signatory; generic director allegations cannot sus...
IT Resilience Index requires market infrastructure institutions to automate resilience scoring, early warnings, and continuous service-delivery monito...
The ITAT allowed the assessee's appeal, holding that the bad debt claim under section 36(1)(vii) is allowable as the debt was effectively written off in the books despite being recorded as a provision for doubtful debts. The tribunal emphasized that the statutory requirement is satisfied if the write-off is real and identifiable, irrespective of the nomenclature used. Reliance was placed on ledger entries demonstrating the debit to the profit and loss account and credit to the debtor's account, confirming the write-off. The absence of a formal court order or allegations of fabrication were rejected due to evidence of partial payments received, including through court channels. The decision aligns with CBDT Circular No. 12/2016, which permits bad debt claims even if recovery efforts continue. Consequently, the addition disallowing the bad debt was set aside.
The ITAT allowed the assessee's appeal, holding that the bad debt claim under section 36(1)(vii) is allowable as the debt was effectively written off in the books despite being recorded as a provision for doubtful debts. The tribunal emphasized that the statutory requirement is satisfied if the write-off is real and identifiable, irrespective of the nomenclature used. Reliance was placed on ledger entries demonstrating the debit to the profit and loss account and credit to the debtor's account, confirming the write-off. The absence of a formal court order or allegations of fabrication were rejected due to evidence of partial payments received, including through court channels. The decision aligns with CBDT Circular No. 12/2016, which permits bad debt claims even if recovery efforts continue. Consequently, the addition disallowing the bad debt was set aside.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
