2017 (6) TMI 78

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....see, a company engaged in the business of architectural and engineering consultancy, filed its return of income for asst. year 2011-12 declaring loss of (-) Rs. 4,75,10,788/- The case was selected for scrutiny and the assessment was completed u/s 143(3) of the Income-tax Act, 1961 (in short 'the Act') vide order dated 19/3/2014; wherein the loss returned at Rs. 4,75,10,788/- was accepted and assessed as such. 2.2 Aggrieved by the aforesaid order of assessment for asst. year 2011-12, dated 19/3/2014, the assessee preferred an appeal before the CIT(A)-2, Bangalore. Before the ld CIT(A)-2, the assessee challenged the action of the Assessing Officer ('AO') in disallowing its claim for bad debts amounting to Rs. 4,31,73,431/- written off in i....

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....ave been written off in the books of accounts of the appellant." 3.2.1 According to the ld AR for the assessee, the ld CIT(A), in the impugned order, has dismissed the assessee's appeal merely stating that the assessee's claim for write off of bad debts was rightly denied by the AO in view of the decision of the Hon'ble Apex Court in the case of Goetze (India) (284 ITR 323), since the said claim was neither made in the original return of income filed or by way of revised return of income. It is submitted that the assessee had made a provision for bad and doubtful debts amounting to Rs. 4,31,73,431/- in its books of account in the period relevant to asst. year 2010-11 and the same was written off in its books of account in the year under ....

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....o claim a deduction or exemption in appeal. It is prayed that in view of the facts of the case and in the light of the aforesaid judicial pronouncements, the ld CIT(A)/AO be directed to admit the assessee's claim for writing off of bad debts amounting to Rs. 4,31,73,431/- for consideration and adjudication on merits. 3.3 Per contra, the ld DR supported the impugned order of the ld CIT(A). 3.4.1 We have heard the rival contentions and perused and carefully considered the material on record. The facts of the case, as emerge from the record, are that in the course of assessment proceedings the assessee raised by way of letter dated 7/3/2014, a claim for deduction of an amount of Rs. 4,31,73,431/- as bad debts written off in the assessee'....