2011 (3) TMI 454

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....llant.   Mr. Pankaj Jain, Advocate for the respondent.   AJAY KUMAR MITTAL, J.   This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") against order dated 28.2.2003 passed by the Income Tax Appellate Tribunal, Chandgiarh Bench 'B', Chandigarh in ITA No.1321/Chandi/95, relating to the assessment ye....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... The assessee filed appeal before the Commissioner of Income-Tax (Appeals) (for short "the CIT(A)") which was partly allowed on 4.9.1995. However, the disallowance for provision for bad and doubtful debts was upheld. On further appeal filed by the assessee, the Tribunal accepted the claim of the assessee relating to provision for bad and doubtful debts vide order dated 28.2.2003. The Revenue feel....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd supported the order passed by the Tribunal.   5. It would be advantageous to refer to Explanation to Section 36(1)(vii) inserted by Finance Act, 2001 with effect from 1.4.1989 which reads as under:- "Explanation:- For the purposes of this clause, any bad debt or part thereof written off as irrecoverable in the accounts of the assessee shall not include any provision for bad and doubt....