2017 (3) TMI 1672

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....e Revenue is directed against the order of the CIT(A)-03, Mumbai dated 23/02/2015, pertaining to the Assessment Year 2010-11, which in turn has arisen from the order passed by the Assessing ACIT Circle-4 dated 27/09/2013 under section 271(1)(c) of the Income Tax Act, 1961 (in short 'the Act'). The only ground in this appeal reads as under: 1. On the facts and in the circumstances of the case, th....

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....ssee had not made any provision for bad and doubtful debts. In fact, against the item Other Provisions (a) Bad and Doubtful debt Reserves, the assessee had debited the amount as Rs. 0 in the year under consideration as against Rs. 1,25,00,000/- in the previous year. However, in computation of income, the assessee had claimed deduction of Rs. 60,24,753/- u/s 36(1)(viia). The A.O., therefore, conclu....

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.... "6.1. Considering the facts in entirety and above case laws, in my considered opinion, this is not a fit case for levy of penalty u/s 271(1)(c) of the I.T. Act, 1961. The appellant has, merely failed to provide the provisions for bad and doubtful debts, though the provisions made as per RBI guidelines, in the earlier year, was in excess. The appellant has directly claimed the deduction in the com....

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....he books for debting in the P & L account as per the provisions of the Act. Therefore, the assessee had neither concealed nor filed any inaccurate particulars of income. The assessee has duly disclosed the facts of income in its return of income filed before the department. Therefore, we are of the view that the issue in controversy is covered by the decision of Hon'ble Supreme Court in the case o....