https://www.taxtmi.com/caselaws?id=781446 ITAT Mumbai allowed the assessee's appeal and directed the AO to delete the disallowance under s.36(1)(viia) for provision for bad and doubtful debts. The AO's denial-based on ledger entries being passed in the subsequent AY-was held unsustainable because the transfers followed auditors' memorandum dated 13.07.2007 and were reflected in the books though adjusted as of 31.03.2007. Despite CIT(A)'s view that routing through P&L is required, ITAT held that, given the legislative change effective AY 2007-08, the assessee's first-time claim under s.36(1)(viia) must be allowed. en-us Tue, 04 Nov 2025 00:00:00 +0530 Sat, 15 Nov 2025 07:56:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781446 ITAT Mumbai allowed the assessee's appeal and directed the AO to delete the disallowance under s.36(1)(viia) for provision for bad and doubtful debts. The AO's denial-based on ledger entries being passed in the subsequent AY-was held unsustainable because the transfers followed auditors' memorandum dated 13.07.2007 and were reflected in the books though adjusted as of 31.03.2007. Despite CIT(A)'s view that routing through P&L is required, ITAT held that, given the legislative change effective AY 2007-08, the assessee's first-time claim under s.36(1)(viia) must be allowed. Case-Laws Income Tax Tue, 04 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781446