2026 (4) TMI 575

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..... Prabhu Mukunth Arunkumar For the Respondent : Mr. R. Vijayaraghavan For M/s.Subbaraya Aiyar Padmanabhan Ramamani JUDGMENT DR. G. JAYACHANDRAN J. This Tax Case Appeal has been filed by the Revenue challenging the order of the Income Tax Appellate Tribunal (ITAT) holding that amounts that have become a bad and irrecoverable debts are allowable as a deduction under Section 115JA of the ....

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....ent is valid in law?" 3. The learned counsel appearing for the appellant / Department, with regard to the first question of law, submitted that the provision for bad and doubtful debts must be added back while computing book profits under Section 115JA of the Income Tax Act, 1961. This is in view of Explanation (g) to Section 115JA(2), which was inserted by the Finance (No.2) Act, 2009, with re....

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....ur of the Revenue and against the assessee. 6. As far as the second question of law is concerned, the issue of submitting an audit report at the appellate stage to substantiate a claim for deduction under Section 80IA(7) is no longer res integra. This issue is covered by the judgment of the Coordinate Bench in TCA.No.966 of 2013, in the matter of CIT, Madurai Vs. M/s.Ramco Cements Limited, Wher....

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....course of assessment relating to the assessment year 2009-10 and they very well complied with the requirement of Section 80IA(7) for claiming deduction under Section 80IA. Therefore, the CIT(A) allowed the claim of the respondent / assessee, which was also rightly affirmed by the ITAT and the same do not call for any interference at the hands of this Court." 7. In view of the above judgment, we....