Bad debts recovered & offered to tax cannot be taxed again under Section 69A

Overseas Beverages Pvt. Ltd. Vs ACIT (ITAT Chennai) The Income Tax Appellate Tribunal (ITAT) Chennai, in the case of Overseas Beverages Pvt. Ltd. v. ACIT, has deleted an addition of Rs. 1 crore made under Section 69A of the Income Tax Act, 1961. The addition was made by the Assessing Officer (AO), treating the cash deposits during the demonetization period as unexplained money. The taxpayer, engaged in manufacturing Indian Made Foreign Liquor (IMFL), contended that the amount represented the recovery of old bad debts, already written off in earlier years and credited as business income. The Tr...