RAMSONS ORGANICS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal by the assessee under Section 260A of the Income Tax Act, 1961 (Act, for short) relates to assessment year 2005 -06 and was admitted for hearing vide order dated 7th July, 2014 on the following substantial question of law: -

(2.) THE impugned order passed by the Income Tax Appellate Tribunal (Tribunal, for short) is dated 28th June, 2013.

(3.) IN the first appeal, the assessee raised a ground that Rs. 25,33,078/ - should not be treated as bad debt relatable to the Assessment Year 2005 -06. The submission was that the two amounts totalling Rs. 25,33,078/ - were not written off as bad debt in the year in question, but had been written off in the assessment years 2008 -09 and 2007 -08. Accordingly, they would impact the profits for the assessment years 2008 -09 and 2007 -08, without affecting the profits of the current year, i.e. the assessment year 2005 -06. The Commissioner of Income Tax (Appeals) rejected the said contention, observing: -