2008 (8) TMI 484

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.... two appeals arise out of by the common order passed by the Tribunal, dated February 20, 2007, and relating to the assessment years 1989- 90 and 1991-92. 2. The controversy involved is very short, inasmuch as the assessee was following a practice of creating a provision on account of bad and doubtful debts by first debiting it in its profit and loss account and then adding it back while comp....

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....e learned Commissioner verified the factual aspects from the accounts and other details of the assessee and looked into the continued account of the past years. It was also found that the Assessing Officer had himself also accepted the correctness of the claim of the assessee but had given the benefit only to the extent of the provision made instead of the written back amount. As such, it was foun....

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....the provision in the earlier years of course the written back amount could be liable to tax but then since no deduction was claimed when the provision was made subsequent realisation from the debtors cannot be charged to tax. 3. In our view, the findings recorded by the learned Tribunal, are perfectly in accordance with law. 4. The question suggested by the Revenue to be arising in appeal, i....