TaxTMI 
TaxTMI 
2022 (1) TMI 489
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....ish Mishra, learned counsel for the Appellant and Shri Rajiv Kumar Sinha, learned counsel for the respondent. 3. By means of the Income Tax Appeal No. 40 of 2017 filed under Section 260-A of the Income Tax Act, the appellant has challenged the judgement and order dated 09-06-2017 passed by the Income Tax Appellate Tribunal at Lucknow in Income Tax Appeal Number 112/LKW/2017. 4. The following two substantial questions of law have been framed in the memorandum of the appeal:- "Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT is justified in deleting the addition of Rs. 5,97,61,000/- made on account of bad debt without appreciating the fact that the assessing officer made the addition as the books of accounts....
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....ent, in which the following submission made on behalf of the assessee was categorically recorded: - "We are state government corporation and our accounts are audited by CAs appointed by Comptroller and Auditor General of India. We have divisions all over U.P. and Head Office at Lucknow. For each Division and Head Office, separate auditors are appointed by CAG. During the year there is a delay in appointment of auditors by C & AG for Divisional Officers and for Head Office. Audit of accounts are not finally completed yet." 8. As the case was getting barred by limitation on 31.03.2015 in absence of audit report and the audit was still pending, the assessee filed its return by computing its income at Rs. 23,19,68,000/- on the basis of the r....
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....unts cannot be disallowed." The Appellate Authority deleted the addition of Rs. 5,97,61,000/- made by the Assessing Officer on account of dis-allowance of bad debts. 11. The Income Tax Department challenged the aforesaid order dated 30- 11-2016 by filing ITA number 112/LKW/2017 before the Income Tax Appellate Tribunal at Lucknow, which has been dismissed by the impugned judgement and order dated 09-06-2017. The Income Tax Appellate Tribunal has recorded a categorical finding "that the assessee has not raised any claim of bad debt either in the profit and loss account or balance sheet. The Assessing Officer has made an addition having read provisional profit and loss account without looking to the audited balance sheet." The Income Tax Appe....
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....nt case, the order of the Assessing Officer was challenged in appeal before the Commissioner. While deciding an appeal, the Commissioner has all the powers of Assessing Officer and he may affirm, reduce, endorse or annul the assessment. In the present case, the Commissioner, on the basis of material on record, recorded a categorical finding of fact, which has been affirmed by the Income Tax Appellate Tribunal in further appeal exercising the powers conferred on it by Section 254 (1) of the Income Tax Act, 1961 and we find no legal error in exercise of powers by the Income Tax Appellate Tribunal. 15. Accordingly we answer that substantial questions of law formulated in the appeal as follows: - (i) In view of the facts and circumstances of....