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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI [CAMP: MADURAI
Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) – II, Madurai, dated 20.08.2014 and pertains to assessment year 2007-08.
Sh. R. Vijayaraghavan, the Ld.counsel for the assessee, submitted that the provision for bad debt is allowable as statutory deduction under Section 36(1)(viia) of the Income-tax Act, 1961 (in short 'the Act'). However, by inadvertent error, it was not raised before the lower authorities, therefore, this ground is raised before this Tribunal by way of additional ground. Therefore, the Ld.counsel submitted that the matter may be remitted back to the file of the Assessing Officer for verification and pass order on merit.
Shri S. Renga Rajan, the Ld. Departmental Representative, submitted that this ground was never raised before the lower authorities, therefore, the lower authorities had no occasion to consider this ground.
We have considered the rival submissions on either side and perused the relevant material available on record. Admittedly, Section 36(1)(viia) of the Act provides for statutory deduction.
Merely because the assessee has not raised the same before the lower authorities that cannot be a reason not to consider the statutory deduction. This Tribunal is of the considered opinion that the matter needs to be verified by the Assessing Officer.
Accordingly, the order of the lower authorities are set aside and the issue of deduction claimed by the assessee under Section 36(1)(viia) of the Act is remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue in the light of the statutory provisions contained in Section 36(1)(viia) of the Act and pass order on merit on the basis of the material available on record, after giving a reasonable opportunity to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 16th February, 2017 at Madurai.