Under Mercantile method of accounting Loss in business can be booked in the year in which it is determined

Brief of the case:

ITAT Chandigarh held in Lakshmi Energy & Foods Products Ltd Vs The ACIT that if the assessee was following mercantile method of accounting and it had booked loss in the assessment year in which the same had been determined then the same should be allowed because the assessee had taken all the required necessary steps to recover the amount, it had appealed to the ministry of commerce and also export departments etc but failed. So, it was determined in the year under appeal that the difference amount would not be recoverable so it had claimed the loss in its books of account. The revenue view that the same had been determined in the subsequent year of the year under appeal because the same was not confirmed by the opposite party was not tenable.

Deduction u/s 80IB(11A) cannot be allowed if return is filed late.

Moreover if the assessee had filed it return of income late then it would not be allowed deduction of sec 80IB(11A). Additional grounds of appeal could not be entertained if the return of income had been filled late.

Facts of the case:

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