Bad Debts Allowed on Write-off, 26AS Mismatch Cannot Trigger Addition: ITAT Dismisses Revenue Appeal

ACIT Vs Sheetal Jewellery House LLP (ITAT Mumbai) Bad Debts Allowed on Write-off 26AS Mismatch Cannot Trigger Addition – ITAT Dismisses Revenue Appeal Revenue challenged deletion of multiple additions by CIT(A) including bad debts (₹3.61 Cr), 26AS mismatch (₹12.03 lakh) & commission (₹2.98 lakh). On Bad Debts (Sec 36(1)(vii)): Assessee wrote off debt relating to earlier years & had filed NCLT claim ITAT held: post-1989 amendment, mere write-off is sufficient; no need to prove irrecoverability (relying on TRF Ltd) Deduction rightly allowed On 26AS mismatch: Difference due to ...