Provision for doubtful advances not allowable as Bad debts U/s. 36(1)(vii)

Elite International (P.) Ltd. Vs ACIT(ITAT Mumbai) In the instant case Upon perusal of financial statements we find that the assessee has claimed the said expenditure of Rs. 530.47 Lacs under the head ‘Provision for doubtful advances’ and this provisions has been reduced from the figures of Advances recoverable in cash or in kind or for value to be received under the head Other current Assets, Loans & Advances in the Balance Sheet for impugned AY. A perusal of Debit notes / ledger extract of the suppliers placed in the paper-book reveals that the assessee has raised these debit notes b...