SAP INDIA PVT LTD,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-6(1)(1), BANGALORE

In the course of hearing, it was submitted by learned AR of the assessee that ground No.2 regarding disallowance of depreciation is not pressed and accordingly, this ground is rejected as not pressed.

It was submitted before us in respect of Ground No. 1 i.e. about issue of bad debts written off, learned AR of the assessee placed reliance on the judgment of Hon’ble Apex Court rendered in the case of T.R.F. Ltd. as reported in 323 ITR 397. He also submitted that on pages 280 and 281 of the Paper Book is CBDT’s Circular No.12/2016 dated 30.05.2016 in which it is clarified that the claim of the assessee regarding writing off of bad debts is allowable if it is written off as irrecoverable in the books of the assessee and it fulfills the conditions stipulated in sub section (2) of section36 of the Income Tax Act, 1961. Regarding the details of bad debts written off by assessee, he submitted that party wise details are available on pages 223 to 226 of the Paper Book and it contains list of 201 parties from whom this amount of Rs.38,51,27,803/- was receivable. As against this, learned DR of the Revenue supported the orders of the authorities below. He also submitted that it is noted by the learned CIT(A) in para 7 of his order that the AO requested the assessee to furnish two details (i) exact nature of transaction with the parties and (ii) exact reason for treating the debt as bad and irrecoverable. He further submitted that in para 8 of his order, it is noted by learned CIT(A) that it is observed by the AO in the assessment order that the assessee, during assessment proceedings failed to furnish these details called for by the AO. Dated: 07th February, 2020. /NS/* Copy to: