The assessee wrote off the amount outstanding of seven parties. The AO made addition u/s 41(1) of the Act. CIT(A) affirmed the addition. On appeal the Tribunal remanded the matter for de novo consideration. (AY. 2019-20)
Kotak Mahindra Bank Ltd. v. DCIT (2025) 211 ITD 608 (Mum) (Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Bad debts written off-Matter is remanded for de novo consideration.[S. 131, 133(6)]
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