Held that the profit and loss account for the year ended March 31, 2014 showed that the bad debt which was received by the assessee and was declared as income in the subsequent AY. Thus, once the assessee had offered the income to tax in the subsequent AY, there was no basis for the disallowance. Matter remanded to the file of CIT(A). (AY. 2013–14)
Vijay Liladhar Mohmaya v ITO (2023)101 ITR 33 (SN) (Mum) (Trib)
S. 36(1)(vii) : Bad debt-Bad debt or part thereof-Sum received-Declared as income in subsequent year-Disallowance is not justified.[S. 36(2)]