TaxTMI 
TaxTMI 
2022 (6) TMI 1115
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.... Appeal Centre (NFAC), Delhi [in short ld. "CIT(A)"]. 2. The assessee is in appeal before the Tribunal raising the following grounds: Assessment Year 2012-13: "1. Under the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi has erred in law as well as in facts in confirming the disallowance and addition of claim of bad debts of Rs. 84,53,517/-. 2. Under the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi has erred in law as well as in facts in confirming the disallowance and addition of claim of bad debt of Rs. 84,53,517/- without appreciating the ratio of the Judgement of the Hon'ble Supreme C....
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....es leave to amend, add, alter, modify and withdraw any or all of the above grounds at any time before oy at the time of disposal of the appeal." 3. We will first take ITA No. 209/Kol/2022. The only issue in this appeal relates to the disallowance of claim of bad debts of Rs. 84,53,517/- which was made by the ld. Assessing Officer (in short ld. "AO") denying the claim and the same being confirmed by ld. CIT(A). 4. We have heard rival contentions and perused the records placed before us. We notice that the assessee is a limited company. Income of Rs. 28,37,35,921/- has been declared in the e-return of file on 28.09.2012. During the course of assessment proceedings carried out after being selected for scrutiny on the basis of CASS and duly s....
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....989, it is not necessary for assessee to establish that debt, in fact, has become irrecoverable; it is enough if bad debt is written off as irrecoverable in accounts of assessee. Examining the facts in the instant case, we find that the assessee has rightly claimed the bad debts in its books of account and claimed it as deduction as bad debts at Rs. 84,53,517/- as it has been shown as irrecoverable by the assessee and duly written off in the books of accounts. We, therefore, reverse the finding of the ld. CIT(A) and delete the disallowance of bad debts of Rs. 84,53,517/- and allow ground nos. 1 & 2 raised by the assessee for AY 2012-13. 7. Ground no. 3 is general in nature which need no adjudication. 8. In the result, the appeal filed by ....
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....n 36(1)(va) and section 43B of the Act and erred in holding it as clarificatory and so, retrospective in nature. 13. Whereas according to ld. A/R, it is only prospective in nature and cannot disturb the binding judicial precedents in favour of assessee. According to the ld. A/R, this issue is no longer res-integra as held by this Tribunal in the case of Lumino Industries Ltd. vs. ACIT, Circle-5(1), Kolkata in I.T.A. No.365/Kol/2021 for AY 2015-16 order dated 17.11.2021, wherein assessee's favour view was taken by the Tribunal after holding that the amendment brought in by Finance Act, 2021 w.e.f 01.04.2021, is prospective in operation and so will be in force from AY 2021-22 onwards and not retrospective. The relevant portions of the decisi....
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....clarified that the provision of Section 43B shall not apply and shall be deemed never to have been applied for the purpose of determining the due date under this clause. For ready reference, we reproduce the Explanation-2 to Section 36(1)(va) as under: "Section 36(1)(va) Explanation-2 - For the removal of doubts, it is hereby clarified that the provisions of Section 43B shall not apply and shall be deemed never to have been applied for the purpose of determining the 'due date* under this clause." 18. We find that this amendment has been brought in the Act to provide certainty about the applicability of Section 43B in respect of belated payment of employees' contribution. In order to test whether the amendment brought in later is retro....
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....r, the amendment brought in by Finance Act, 2021 on this issue as discussed is prospective and Ld. CIT(A) erred in holding otherwise. So till AY 2021-22, the Jurisdictional High Court's view in favor of assessee will hold good and is binding on us. As discussed the decision of the Hon'ble Delhi High Court in Bharat Hotels Ltd. (supra) which was in favor of revenue has not considered the decision of the Co-ordinate Division Bench decision in M/s Aimil Ltd. (supra) which is in favour of assessee. So we note that later decision of the Delhi/Hyderabad Tribunal have followed the decision favouring assessee in the light of the Hon'ble Supreme Court decision in M/s Vegetable Products (supra). In the light of the aforesaid decision and relying on t....