2025 (7) TMI 900

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....2(1) of the Act were issued with questionnaires, and replies were filed. 2. An assessment order came to be passed, by which the provisions relating to claims / liabilities up to accounting year 2000-01 for Rs. 15.04 crores was disallowed. An appeal was preferred by the assessee and the appeal came to be allowed by the Commissioner of Income Tax (Appeals) [CIT (A)]. The Revenue challenged the order by filing an appeal before the Income Tax Appellate Tribunal (ITAT) and ITAT by order dated 23.01.2009, dismissed the Revenue's appeal. It is this order that is impugned in the appeal before us. 3. On 13.10.2009, when the appeal came to be admitted, the following substantial question of law was framed : "Whether on the facts and in the cir....

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....s raised by SICAL, it was not possible for the assessee to take any decision in the matter regarding the provisions made in the accounts, as the matter was sub-judice. 6. In response to these submissions of assessee, the Assessing Officer chose to term the provision as 'a contingent one'. The Assessing Officer, as submitted by Mr.Ravi Kumar before us today, opined that as per the mercantile system of accounting, assessee should have taken all the bills raised on SICAL but not realised during the year and earlier years, to debtor's account, and the year in which a part thereof becomes bad, the same should have been written-off in the book as bad debts. According to Mr.Ravi Kumar, since neither the liability has actually crystall....