Tribunal held that ; If the AO has failed to discharge his obligation to conduct a proper inquiry, it is the obligation of the ITAT to ensure that effective inquiry is carried out. The AO has not examined the crucial aspect whether the bad debts claimed by the assessee due to the NSEL scam constitutes a “speculative transaction” u/s 43(5) and whether Explanation to S. 73(1) applies. Matter remanded . ( ITA No. 2 8 1 8 / Ah d / 1 7, dt.16.10.2018)(AY. 2014-15)
Omni Lens Pvt. Ltd. V. DCIT ( 2019) 174 ITD 262 ( Ahd)(Trib),www.itatonline.org
S. 254(1) : Appellate Tribunal – Duties- Bad debts-If the AO has failed to discharge his obligation to conduct a proper inquiry, it is the obligation of the ITAT to ensure that effective inquiry is carried out-The AO has not examined the crucial aspect whether the bad debts claimed by the assessee due to the NSEL scam constitutes a “speculative transaction” u/s 43(5) and whether Explanation to S. 73(1) applies. Matter remanded . [ S.36(1(iii), 43(5) , 73(1)]