A perusal of the order of the learned Commissioner of Income-tax (Appeals) clearly shows that the assessee had written off bad debt in the books. Further, it is noticed that the Learned Commissioner of Income-tax (Appeals) had followed the decision of the Hon’ble Bombay High Court in the case of Director of Income-tax (International Taxation) Vs. Oman International Bank (refer to supra) on this issue. The finding of the learned Commissioner of Income-tax (Appeals) that the bad debt written off in the books has not been disputed by the revenue. In the circumstances, the finding of the learned Commissioner of Income tax (Appeals) on this issue is on right footing and does not call for any interference.
INCOME TAX APPELLATE TRIBUNAL, CALCUTTA
ITA No. 1421/Kol/2011 – Assessment Year: 2006-07
D.C.I.T.
-Versus-
M/s. Sky B (Bangla) Pvt. Ltd
Date of Pronouncement: 19-06-2012
ORDER
Shri George Mathan, Judicial Member
This is an appeal filed by the revenue against order of the learned Commissioner of Income tax (Appeals), XII, Kolkata in appeal no. 204/XII/Cir-12/08-09 dated 01-07-2011 for the assessment year 2006-07.
2. In this revenue’s appeal, the revenue has raised following grounds of appeal:-
1. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting the addition of Rs. 17,32,492/- towards provision of sundry debtors debited in P & L A/c.
2. Whether, on the facts & in the circumstances of the case, Ld. CIT(A) is correct in deleting the disallowance of Provision of bad debt of Rs.25,00,000/- where the assessee added back of Rs.25,00,000/- as Provision of Sundry debtor not provision of bad debt.
3. On the facts and in the circumstances of the case, the CIT(A) has erred in deleting disallowance of Rs.22,85,876/-on account of bad debt written off without bringing any evidence of commercial expediency of the assessee. “
3. Shri D.J. Mehta, learned CIT/DR represented on behalf of the revenue and Shri M.Satnaliwala, FCA, learned AR represented on behalf of the assessee.
