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

Provision for doubtful debts is held admissible deduction u/s36(1)(vii)

ByCA Gopal Nathani

Dec 2, 2024

By a landmark decision of the ITAT rendered in (2024] 120 ITR (Trib) 295 (ITAT[Bang]) it is held that where the assessee had reduced the provision for doubtful debts from sundry debtors on assets side and shown debtors net of the provision for doubtful debts in the balance-sheet, the provision for doubtful debts debited to profit and loss account in the situation would be an allowable deduction. The bench held that this accounting treatment will amount to actual write off and meet the purpose of accounting requirements of section 36(1)(vii) and explanation there to. This decision is rendered in the case of a software company drawing reference from apex court observations in the case of Vijaya Bank v. CIT (323ITR166) to the effect that section 36(1)(vii) of the 1961 Act applies both to banking and non-banking businesses.