2025 (7) TMI 169

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.... None For the Respondent : Smt. Leena Lal, Sr.AR ORDER PER PRAKASH CHAND YADAV, JM : The present appeal of the assessee is arising from the order of the National Faceless Appeal Centre / learned Commissioner of Income-tax (Appeals) ["CIT(A)" for short] dated 13.11.2024, having DIN & Order No.ITBA/NFAC/S/250/2024- 25/1070338336(1) and relates to the assessment year 2012- 2013. 2. Bri....

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....l interest in case of default. The assessee has charged penal interest from the borrowers who committed default. However the assessee has subsequently waived the interest and penalty as directed by the Government of Kerala. As a result of which, this bad debts have been accrued to the assessee. Dissatisfied with the reply of the assessee, the AO disallowed the claim of bad debts. It is pertinent t....

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....n the orders of the authorities below. 6. After considering the arguments of the learned DR and perusing the material available on record, we observe that the AO as well as the CIT were not correct in appreciating the fact that the assessee is entitled for deduction u/s. 80P (2)(a)(i) of the Act, and hence, whatever disallowance has been made by them would ultimately increase the profit eligibl....