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BAD DEBTS ::

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Court :
HC

Brief :
Held by the Hon`ble Court that, unless the A.O. had rejected the entire books of accounts to be totally unreliable and finding extreme perversity in declaration of debts to be bad debts the stand of assessee cannot be ignored by the revenue. Therefore deduction allowed as bad debts is justified in law.

Citation :
C.I.T. Vs. Nai Dunia

Bad Debts C.I.T. Vs. Nai Dunia 02/10/2006 [2007] 295 ITR 346 (MP) Case Fact: Whether, allowing the deduction as bed debts where no rejection of accounts and no finding of perversity in declaration of debts to be bad but debts actually written off in accounts is, justified in law? Decision: Held by the Hon`ble Court that, unless the A.O. had rejected the entire books of accounts to be totally unreliable and finding extreme perversity in declaration of debts to be bad debts the stand of assessee cannot be ignored by the revenue. Therefore deduction allowed as bad debts is justified in law.
 

CA.Saibaburao Nanduri
on 09 January 2008
Published in Income Tax
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