Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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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.
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