2022 (6) TMI 1003

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....he provisions of Sec. 263 and setting aside the order u/s 143(3) on the grounds that order u/s 143(3) is erroneous so far as it is prejudicial to interest of revenue. b. The PCIT erred in arriving at the conclusion that claim of deduction u/s 36(1)(viia) needs examination and verification not appreciating the fact that claim of allow ability of bad debts was verif ied and that the same issue was subject matter of appeal in earlier years and that the same having been allowed in earlier years by the CIT(A) and for assessment year 2011-12 the claim was allowed by Hon'ble ITAT and as such the action u/s 263 Is uncalled for. c. The appellant submits that order u/s 263 needs to be cancel led. 2. The appellant craves lea....

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.... of claim of bad debts of Rs. 1,68,89,428/-. The assessee has submitted the details before the A.O. The Ld. AR submitted the details of the A.Y 2012-13 & 2013-14 were against disallowance of bad debts claim, on appeal the CIT(A) has allowed the claim u/s 36(1)(viia) of the Act. The assessee has explained in the revision proceedings that the bad debts claim issue has been verified year to year and deduction was allowed. But the Pr.CIT has dealt on the provisions of Sec. 36(1)(viia) of the Act and is of the opinion that the assessee has not followed procedure laid as per the provisions of Sec. 36(1)(viia) of the Act and the Auditors certificate in respect of bad debts was not provided. Hence the claim of deduction u/s 36(1)(viia) of the Act s....

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....at page 14 of the paper book on the claim of deduction and earlier three assessment years orders at item 11&15 of the notice. The assessee has filed a reply to notice U/sec142(1) of the Act on 08-12-2017 referred at page 16 and 17 in particular to s.no.12 and the documents in support of claim of deduction which includes bad debts, contingent provision for standard asset and computer software. The Ld.AR emphasized that the Honble ITAT and CIT(A) in earlier years of has allowed the bad debts claim. 6. The assessee has furnished the details in the course of assessment in lieu of notice issued u/s 142(1) of the Act and further the claim of the assessee has been accepted in earlier year. In case the claim was not allowed by the revenue, the a....