Bad Debt Write-Off Not an ‘Incorrect Claim’ for Section 143(1) Adjustment

DCIT Vs M.M. Healthcare Limited (ITAT Delhi) CPC Can’t Sit in Judgment on Capital vs Revenue at 143(1) Stage: Delhi ITAT Dismisses Revenue Appeal on ₹7.30 Cr Bad Debt Adjustment Delhi ITAT dismissed the Revenue’s appeal and upheld the order of the Addl./JCIT(A) quashing the CPC’s adjustment made u/s 143(1), holding that CPC exceeded its limited jurisdiction by disallowing a debatable bad-debt claim treating it as capital in nature. The Assessee had written off ₹7.30 crore advanced to JMD Oil Pvt. Ltd. for a proposed joint-venture manufacturing unit for generic medicines, which later ...