2021 (6) TMI 288

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..... S. VISWANETHRA RAVI, JM: This appeal by the assessee is against the order dated 22.01.2018 by the Commissioner of Income Tax (Appeals) - 13 for the assessment year 2014-15. 2. The only issue to be decided is as to whether the Commissioner of Income Tax (Appeals) is justified in confirming the addition made being excess of Bad and Doubtful Debts Recoverable (BDDR) in the facts and circumstances....

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....ceeded to add the same to the income of the assessee. 4. Before the Commissioner of Income Tax (Appeals), it was contended that during the assessment year 2006-07, the assessee used to make a provision of BDDR as per Reserve Bank of India (R.B.I) guidelines and also the income of the assessee exempt under Sec.80P(2)(a)(i) of the Act upto the same assessment year i.e., 2006-07. For the year under ....

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....f the assessee as not acceptable and proceeded to confirm the addition made on account of excess BDDR provision. 5. Before us, Shri M.K. Kulkarni, the Ld.A.R. reiterated the submissions as made before ld.CIT(A) and prayed to allow the sole ground. 6. Shri S.P. Walimbe, the ld.D.R. relied on the order of Commissioner of Income Tax (Appeals) and prayed to dismiss the ground raised by the assessee.....

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....ore, the provision made as per RBI guidelines for BDDR attains no significance and it has to be treated as income being an excess provision in the year under consideration. In our opinion, as rightly pointed out by the learned Authorised Representative, the provision made under BDDR made out of earlier year's income which was offered to tax in the earlier year. Therefore, we find force in the argu....