https://www.taxtmi.com/caselaws?id=216783 The High Court upheld the ITAT's decision to allow bad debts amounting to Rs. 44,51,796, despite pending recovery proceedings before an arbitrator. The Court agreed that the deductions by Delhi Vidyut Board were damages/compensation, not penalties for late delivery, and dismissed the Income Tax Appeal. Additionally, the Court upheld the ITAT's deletion of an addition of Rs. 2,14,748, considering the payments as legitimate compensation for delayed delivery, not violating Section 40A(3). The Court emphasized that any tax liability would only arise upon actual receipt of the amount by the assessee. en-us Thu, 13 Sep 2012 00:00:00 +0530 Thu, 20 Sep 2012 16:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216783 The High Court upheld the ITAT's decision to allow bad debts amounting to Rs. 44,51,796, despite pending recovery proceedings before an arbitrator. The Court agreed that the deductions by Delhi Vidyut Board were damages/compensation, not penalties for late delivery, and dismissed the Income Tax Appeal. Additionally, the Court upheld the ITAT's deletion of an addition of Rs. 2,14,748, considering the payments as legitimate compensation for delayed delivery, not violating Section 40A(3). The Court emphasized that any tax liability would only arise upon actual receipt of the amount by the assessee. Case-Laws Income Tax Thu, 13 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216783