Case Law Details
Integra Engineering India Ltd Vs ACIT (ITAT Ahmedabad)
In a significant verdict, the Income Tax Appellate Tribunal (ITAT) Ahmedabad, in the case of Integra Engineering India Ltd vs. ACIT, has held that any adjustment made by the assessee on account of bad debts against previously created provisions constitutes actual writing off of bad debts in the books of accounts. The ITAT emphasized that the assessee should not be denied the benefit of bad debts merely because they were not claimed in the profit and loss account but adjusted against the provision of bad debts. Notably, the provision had been created by the assessee in the earlier year from the profit and loss account. Consequently, the ITAT has directed the Assessing Officer (AO) to delete the addition made by him.
FULL TEXT OF THE ORDER OF ITAT Ahmedabad
This appeal filed by the assessee is directed against the order of the learned Commissioner of Income-tax (Appeals)-2, Vadodara [hereinafter referred to as “CIT(A)” for short] dated 02.02.2016 passed under section 250(6) of the Income Tax Act, 1961 [hereinafter referred to as “the Act” for short] for the Assessment Year (AY) 2007-08.
2. The appeal is arising out of the order recalled by the ITAT in the miscellaneous application No. 24/AHD/2023 for the purpose of the adjudication of ground No. 3 only which is reproduced as under:
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