ANITA MEDICAL SYSTEMS PVT LTD ,MUMBAI vs. ITO CIRCLEL 4(1)(1), MUMBAI

ITA 9327/MUM/2025Status: DisposedITAT Mumbai14 July 2026AY 2023-2410 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 36(2)(iv) is a transitional provision and not applicable to the current assessment year. It further held that once the statutory conditions under Section 36(1)(vii) and 36(2) are fulfilled, actual irrecoverability need not be proven.

What were the facts?

The assessee claimed bad debts amounting to Rs. 37,01,707/-. The Assessing Officer disallowed this claim, stating the assessee failed to establish irrecoverability and comply with Section 36(2). The CIT(A) upheld this disallowance.

What were the issues?

Whether the disallowance of bad debts written off in the books of account is justified when the assessee has fulfilled the conditions of Section 36(1)(vii) and 36(2) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 36(1)(vii),Section 36(2),Section 36(2)(iv)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLESMT. BEENA PILLAIAND HON’BLE SHRI JAGADISH

Pronounced: 14.07.2026

PER: BEENA PILLAI, JUDICIAL MEMBER: The present appeal filed by the assessee arises out of order dated 04.11.2025 passed by the NFAC, Delhi for Assessment Year 2023-24 on following grounds of appeal:

1.

The Ld. Commissioner of Income Tax (Appeals) - NFAC erred in not appreciating the fact that the notice u/s. 143(2) of the Income Tax Act, 19

The order continues below.

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