2012 PTD 518

Case Laws / Head Notes / Paras

---Deductions not allowed---Provision for doubtful debts---Taxpayer contended that Assessing Authority wrongly prorated doubtful debts between Presumptive Tax Regime and Normal Tax Regime and the same was confirmed by the First Appellate Authority on the plea that no proof of bad debts was submitted and it was also not an admissible expense being in the nature of provision---Validity---Provision for doubtful debts was inadmissible expense---Provision heading towards ultimate declaration of bad debts, when declared that related to the whole of business capital because it had to be subtracted from there---Taxpayer was not supposed to be given the choice to declare the same under Presumptive Tax Regime when it was inadmissible and to take the advantage of zero tax impact---Bad debt was to spr...