TaxTMI 
TaxTMI 
2004 (8) TMI 619
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....n appeal filed by the assessee arising out of the order of CIT(A) XLII, Mumbai, dated 22-8-2000 and the issue involved is in respect of disallowance of bad debt of Rs. 3,66,032. 2. Parties heard and the orders of the authorities below perused. During the course of assessment proceedings assessee was asked to furnish the details in respect of the bad debts written off amounting to Rs. 3,66,032 and....
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....the provisions of section 72 of the Income-tax Act. So he has concluded that the bad debts represented the loss of previous business hence not to be allowed to be set off against the income of the current business in view of section 72 of the Income-tax Act, with the result added the same to the total income of the assessee. Being aggrieved, this issue was carried before the first appellate author....
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....wable under section 72 of the Income-tax Act. Since the addition made by Assessing Officer was affirmed, therefore, the appellant is further in appeal. 4. On the basis of above discussion one thing is apparent that the assessee's claim of bad debt was as per the provisions of section 36 of the Income-tax Act however, the authorities below have disallowed the same by invoking the provisions of sec....
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....ection 72 clearly refers that where for any assessment year the net result of the computation under the head 'Profits and gains of business or profession' is a loss and such loss cannot be wholly set off against income then so much of loss can be carried forward to the following assessment year. Next, ld. CIT(A) has mentioned a proviso of section 72(1), that too speaks about a loss originally comp....