Held that unutilized CENVAT and Service Tax credit could not be considered as trade debts of assessee, deduction for same on being written off could not be allowed under section 36(1)(vii), read with section 36(2). Further, since assessee had not been able to bring anything on record to establish that unutilized CENVAT and Service Tax credit amount in question had become irrecoverable during year under consideration, same could not be allowed as business loss in that year. (AY. 2015-16)
Meena Circuits (P.) Ltd. v. ACIT (2022) 193 ITD 318 (Ahd.)(Trib.)
S. 36(1)(vii) : Bad debt-Unutilized CENVAT and Service Tax credit-Not allowable as bad debt-Failure to establish irrecoverable during year under consideration the amount not allowable as business loss. [S. 28(i), 36(2), 37(1)]