Assessment proceedings

Tax queries 262 views 1 replies

Sir,

During scrutiny assessment proceedings, our A.O. want to make addition of unrecoverable debtors of rs 10 Lakhs though we have not claimed them to be bad debts. Can he do so?

Replies (1)

The Assessing Officer can add back only those expenses which have been debited in profit & loss account. In your case, you havent debited those debtors in profit & loss account i.e. you havent considered bad debts as an expenditure, so the same cannot be added back by assesing officer.


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