2016 (8) TMI 1317 - RAJASTHAN HIGH COURT

Deduction of claim on account of Provident Fund (PF) and ESI - Held that:- The privilege fees being a revenue expenditure, is required to be allowed as a revenue expenditure. This court in the aforesaid case has also allowed the claim of the assessee, in so far as payment of PF & ESI etc. is concerned, on the finding of fact that the amounts in question were deposited on or before the due date of furnishing of the return of income and taking in consideration judgment of this Court in Commissioner of Income Tax Vs. State Bank of Bikaner & Jaipur and Commissioner of Income Tax Vs. Jaipur Vidyut Vitaran Nigam Ltd. (2014 (5) TMI 222 - RAJASTHAN HIGH COURT) and accordingly both the questions are covered by the aforesaid judgment and against the revenue.

Claim about bad debt - Held that:- CIT (A) as well as the Tribunal has taken into consideration the judgment of the Apex Court in the case of T.R.F. Ltd Vs. CIT (2010 (2) TMI 211 - SUPREME COURT) and recorded a finding of fact that the said amount having become irrecoverable, the assessee has rightly written off the same and merely because the assessee has not filed any claim, that could not be considered to be a ground for disallowing a bad debt. Admittedly, the amounts were lying outstanding for the last couple of years and the assessee has rightly written off the said amount in the books of account and merely because a suit was not filed and that cannot be considered to be a cogent reason to disallow the claim which became bad. One need not incur good money for recovery of the so called irrecoverable or a bad money and file a suit which remains pending for years and with uncertainty. - Decided in favour of assessee