Section 10AA, 36 of Income Tax Act, 1961—Denial of exemption u/s 10AA—Disallowance of bad debts written of—In the instant case, appeal is filed by assessee against the order passed by CIT.

Denial of exemption u/s 10AA—Held that— the issue is squarely covered in favors of the assessee in assessee’s own case and the facts of the present Assessment Year are identical to that of earlier years. we are of the view that provisions of the Special Economic Zones Act, 2005 shall prevail over the provisions of the Income Tax Act.

Disallowance of bad debts written off—Held that— the bad debts were actually written off in the books of accounts that can be seen from the books of account for Assessment Year 2010-11. The said has been accepted by the Revenue. Therefore, the decision of the Hon’ble Apex Court in case of TRF Ltd. (supra) as well as the Circular No. 12/2016 dated 30/5/2016 is applicable in the present case. The CIT(A) as well as the Assessing Officer were not correct in making addition of 1,55,00,500/- under the head bad debts which were claimed by the assessee in the profit and loss account.
Appeal of assessee allowed. [CLIFF SCAFFOLDINGS PVT. LTD. VERSUS ITO, WARD-3 (2) , NEW DELHI] [2019] 9 ITCD Online (46) [ITAT DELHI]