Post amendment in S.36(1)(vii), assessee is not required to demonstrate that debt is bad

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INCOME TAX APPELLATE TRIBUNAL, MUMBAI

ITA Nos. 4882, 2475, 6527/Mum/2010

Assessment Years-2003-04, 2004-05 and 2005-06

ACIT Vs. M/s. Bobcards Ltd.

Date of pronouncement: 20.6.2012

AO has not given any reason for disallowing the claim. We also find that the AO has simply followed the findings of earlier assessment years. As similar additions in earlier assessment year has been deleted by Ld. CIT(A) which has been accepted by the Revenue as Committee on Dispute declined to give permission to the department to proceed with the appeal , findings of the Ld. CIT(A) become final. As Ld. CIT(A) has rightly pointed out that after the amendment in Section 36(1)(vii), the assessee is not required to demonstrate that the debt is bad . We do not find any infirmity in the finding of Ld. CIT(A). We also draw support from the order of Tribunal in ITA No. 500/M/06 for assessment year 2002-03 in the case of very same assessee in which the Tribunal has allowed the claim of bad debt. Respectfully following the decision of the Tribunal, the claim is allowed for this year also.