Tribunal held that from the appellant’s balance sheet it can be seen that corresponding amount of the provision for doubtful debts debited by the appellant to P&L account also stands reduced from the Trade Receivables and thus, it held that in such a situation the assessee was entitled to the benefit of deduction under section 36 (1) (vii) of the Act, 1961 as there was actual write off by the assessee in the books. It relied on the Supreme Court order with this ratio i.e. Vijaya Bank Ltd v. CIT (2010) 323 ITR 166 (SC) (ITA No. 6548 /Mum/ 2017 dt 22-05 -2019) (AY. 2012-13)
DCIT v. Asian Paints PPG Pvt. Ltd. (Mum.) (Trib.)(UR)
S. 36(1)(vii) : Bad debt – Provision for doubtful debts debited to P&L account also stands reduced from the trade receivables–Held to be allowable as bad debt.