Disallowance of bad debts in case of running account with the party is justified

Brief of the Case ITAT Ahmedabad held In the case of Amar Enterprise vs. ITO that in the present case, the AO has demonstrated that the assessee has continued business transactions with the concerned party. It is also not disputed that the assessee has received payments from the concerned party. Hence, disallowance of bad debts is justified. Facts of the Case The case of the assessee was picked up for scrutiny assessment and the assessment u/s 143(3) was framed vide order dated 04/12/2009, thereby the Assessing Officer made disallowance of bad debt of Rs.1,14,366/- and also made addition of Rs...