Bad Debts

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 02/10/2006 [2007] 295 ITR 346 (MP)

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.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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