As per sec 36(2) beddebt written off as irrecoverable is allowed if such debt taken into account in computing the income of the year in which debt is written off
Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
On the facts and in the circumstances of the case, the CIT(A) erred in deleting the addition on account of Rs.23,00,894/- on account of short recoveries, despite the fact that the transacting parties continued to do business regularly.
CIT(A) did not appreciate the fact that by allowing short recoveries on the lines of bad debts with regular clients the se is able to shift profits to subsequent year.
Citation :
ACIT, Circle 4(1), New Delhi. (Appellant) Vs.Lex Orbis Conbsulting Pvt. Ltd.,709-710, Tolstoy House,15/17, Tolstoy Marg,New Delhi-110 001.(PAN/GIR No.AABCL0049A)(Respondent)
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Ayush
Published in Income Tax
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