TaxTMI 
TaxTMI 
2026 (5) TMI 299
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....e addition made by the AO of Rs. 14,62,371/- as claim of bad debts written off u/s.36(1)(vii) r.w.s. 36(2) of the Act on the alleged ground that the appellant despite giving sufficient opportunities failed to furnish any evidence during assessment proceedings. 2. The Id, CIT(A) ought to have appreciated the submissions & evidence filed before him during the appeal proceedings. The Id. CIT(A) erred in dismissing the appeal without considering the submissions filed. 3. The Id. CIT(A) erred in ignoring the directions of the CBDT Circular No. 12/2016 dt. 30.05.2016 (F.No. 279/ Misc./ 140/2015- TTI). 4. The Id. CIT(A) did not appreciate that complete details debts written off were submitted along with ledger accounts r....
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....In all the grounds raised the sole issue and dispute is regarding bad debt written off of Rs. 14,62,372/- which has not been allowed by the lower authorities as deduction. 3. Before u/s. the learned counsel for the assessee filed a paper book containing pages 1-196. 4. The learned counsel submitted that the Assessing Officer made addition of Rs. 14,62,372/- mainly for the reason that (a) the assessee has not submitted complete details like PAN and full address regarding bad debts which has been written off during the year under consideration; (b) The assessee has not provided any details regarding head of expenditure in respect of bad debts written off ; (c) The assessee has not submitted any explanation regarding efforts made to reco....
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....he Hon'ble Supreme Court in the case of TRF Ltd in Civil Appeal Nos. 5292 to 5294 of 2003. The ld. counsel also referred to the CBDT circular no. 12/2016 whereas CBDT has clearly stated that claim of debt or part of the debt in any previous year shall be admissible u/s 36(1)(vii) if it is written off as irrecoverable in the books of the assessee and the conditions stipulated in sec 36(2) of the Act is fulfilled. According to the ld. counsel submitted that claim of bad debt written off should be allowed to the assessee. 4.2 On the contrary Ld. DR relied on the finding of the lower authorities. 5. We have heard rival submissions of the parties and perused the relevant material on record. We find that Ld. CIT(A) in para 4 of impugned....
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....29,807 1,78,281 2,80,653 27,62,416 29,16,003 1,27,066 Sanjivani Prathisthan 77,038 3,36,317 3,15,143 98,212 10,886 10,000 71,014 28,084 - 15,000 13,084 Shri Samarth Krupa 6,81,888 1,40,795 6,82,000 1,40,683 - 30,000 1,10,683 - - - - SMC Infra Pvt Ltd 9,79,000 25,09,276 30,62,966 4,25,310 8,60,972 10,36,726 2,41,357 8,199 - - 8,199 State Bank of India (Mahad) 1,19,183 91,101 80,108 1,30,176 35,371 24,274 1,41,273 - 92,918 91,418 1,500 Subhash Narayan Malusare 3,77,323 7,59,042 8,00,000 3,36,365 4,64,179 5,15,014 2,33,824 51,706 - 25,000 26,706 Vas....
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.... Central Board of Direct Taxes regarding filing of appeals/pursuing litigation on the issue of allowability of bad debt that are written off as irrecoverable in the accounts of the assessee. The dispute relates to cases involving failure on the part of assessee to establish that the debt is irrecoverable 2 Direct Tax Laws (Amendment) Act, 1987 amended the provisions of sections 36(1)(vii) and 36(2) of the Income Tax Act 1961, (hereafter referred to as the Act) to rationalize the provisions regarding allowability of bad debt with effect from the 1 April, 1989. 3. The legislative intention behind the amendment was to eliminate litigation on the issue of the allowability of the bad debt by doing away with the requirement for ....