https://www.taxtmi.com/caselaws?id=765411 ITAT Bangalore dismissed revenue's appeal on multiple grounds. Tribunal upheld CIT(A)'s deletion of 20% expense disallowance under section 37, finding AO failed to submit remand report despite additional evidence being provided. Five percent addition on sundry creditors under section 41(1) was also deleted as AO made ad hoc addition without proving actual cessation of liability. Tribunal allowed assessee's claim for Rs. 83.59 crores bad debt write-off under section 36(1)(vii), finding it satisfied statutory conditions. However, provision for bad debts from ex-employees was disallowed as assessee failed to prove actual loss during the year. Minor bank reconciliation differences were allowed as deduction. Advances written off to suppliers and staff were disallowed due to insufficient evidence. Book profit computation under section 115JB was remanded to AO for proper calculation with assessee's participation. en-us Mon, 06 Jan 2025 00:00:00 +0530 Fri, 31 Jan 2025 07:54:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765411 ITAT Bangalore dismissed revenue's appeal on multiple grounds. Tribunal upheld CIT(A)'s deletion of 20% expense disallowance under section 37, finding AO failed to submit remand report despite additional evidence being provided. Five percent addition on sundry creditors under section 41(1) was also deleted as AO made ad hoc addition without proving actual cessation of liability. Tribunal allowed assessee's claim for Rs. 83.59 crores bad debt write-off under section 36(1)(vii), finding it satisfied statutory conditions. However, provision for bad debts from ex-employees was disallowed as assessee failed to prove actual loss during the year. Minor bank reconciliation differences were allowed as deduction. Advances written off to suppliers and staff were disallowed due to insufficient evidence. Book profit computation under section 115JB was remanded to AO for proper calculation with assessee's participation. Case-Laws Income Tax Mon, 06 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765411