1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Trigger in Bad debts write off claims

ByCA Gopal Nathani

Jan 22, 2022

Any bad debt write allowance come with a trigger.

By the tax case reported at (2017) 54ITR (Trib) (SN) 8 it is by far important that any bad debt write off claim must match the balance shown as payable by the party in its books of account. In the absence of any reconciliation it is likely that unexplained difference may get disallowed during assessment.

In this case the amounts claimed as write off in assessee books exceeded those shown in the respective party books .